Tulip IT Services Ltd Reports 58% Growth in Revenue and 110% Growth in Net Profit for Q2

Tulip IT Services Ltd, a leading provider of end-to-end data connectivity, ended the second quarter of 2006-2007, showcasing a net profit of Rs. 20.25 crores up 110% from Q2 05-06. The company witnessed a turnover of Rs. 185.18 crores, for the second quarter of 2006-07 and an EPS of Rs. 6.98.

The growth showcases the positive impact of the launch of Tulip Connect, by the company earlier this year. Tulip Connect is India’s largest and unparalleled, managed end-to-end MPLS (Multi Protocol Label Switching) enabled IP/VPN that uses wireless connectivity for the last mile.

Key Developments in Q2, 2006-07

• Key customer acquisitions in the quarter include Aditya Birla Group, Bajaj Allianz, SIDBI Bank, NTT Com India, Safeexpress to name a few.
• The network now offers connectivity across 550 cities in India.
• Tulip received the National Long Distance License from the Department of Telecom and was also awarded the Letter of Intent for International Long Distance license.
• Tulip entered into a significant collaboration with NTT Communication India Private Ltd (NTT Com India Pvt. Ltd.) to provide connectivity services on Tulip’s MPLS network to NTTCom’s global customers based in India. NTT Com India is a 100% subsidiary of NTT communications which is a subsidiary of Nippon Telegraph and Telephone (NTT) Corporation (NYSE: NTT), one of the world's largest telecommunications companies

Lt. Col. H.S. Bedi, Managing Director, Tulip IT Services Ltd, said. "Tulip continues to showcase consistent growth in the second quarter of 2006-07 with the support of our business partners and customers. Tulip Connect has been very well received by the market and will continue to drive growth for the company. We are committed to delivering the highest returns to our shareholders and we expect to sustain a similar growth pattern for the year."

Quarter 2, 2006 -2007 Highlights

• Total Revenue increased to Rs. 185.21 Crores in Q2, 06-07 as against Rs. 117.49 Crores in Q2, 05-06, a 68% increase
• Increase in number of connects in IP/VPN business to 24,106 connects in Q2, 06-07 from 14,980 at the beginning of the quarter
• Revenues from IP/VPN segment witnessed an astounding growth of 278% from Rs.17.67 Crores in Q2 05-06 to Rs. 66.84 Crores in the current quarter
• Revenues from Network Integration (NI) segment were recorded at:
  - Rs. 118.28 Crores in Q2 06-07, up from Rs 99.65 Crores in Q2 05-06
  - 17% increase from Network Integration revenues in Q1 06-07
• Operating margin stood at 19.83%, as compared to 16.36% in Q2 05-06
• EBITDA of Rs. 28.84 crore (up 127.28 % Q-o-Q)
• Cash Profit of Rs. 24.81-crore (up 144.40 % Q-o-Q)

Source : Equity Bulls

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