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Thursday, Apr 27, 2006

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Prithvi net up; plans $70-m FCCB issue

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Acquires Kolkata co for Rs 6 cr

Hyderabad , April 26

Encouraged by robust growth in both turnover and net profit, Prithvi Information Solutions Ltd (PISL) is planning to go in for a foreign currency convertible bond (FCCB) issue up to $70 million to aid acquisitions and achieve exponential growth in the near future.

The Hyderabad-based company reported an impressive net profit of Rs 54.03 crore (Rs 28.69 crore) on a turnover of Rs 452. 73 crore (Rs 305.13 crore) for the financial year 2005-06, a growth of 88.32 per cent and 48.37 per cent over the previous fiscal.

The board of the company, which met here today, also okayed the maiden dividend of 15 per cent for the year (Rs 1.50 on every share of Rs 10), which works out to around 40 per cent on annual basis for the public issue allottees who were allotted shares in November 2005. The earning per share (EPS) was pegged at Rs 29.89 (Rs 47.21).

For the quarter ended March 31, 2006, PISL's sales revenues stood at Rs 137 crore (Rs 90.5 crore), a growth of 51.41 per cent and net was Rs 17.55 crore (Rs 11.29 crore), up 21.99 per cent compared to the corresponding previous period.

Mr Satish Kumar, Managing Director of PISL, told newspersons that the company has acquired the Kolkata-based start-up — Walking Stick — for a consideration of Rs 6 crore. The company specialises in software for migration of PeopleSoft clients to other platforms. For fiscal 2006-07, it is expected to achieve $3 million. On other acquisitions, he said "We are in talks with six-seven prospective companies, especially in the US and Europe for skill consolidation and growth".

PISL focusses on telecom, technology outsourcing, business intelligence and is setting up offices in Dubai, Qatar and Singapore, which will be operational in the next 45 days.

On expansion of the existing Offshore Development Centre in Hyderabad, Mr Kumar said a total of Rs 90 crore was being invested to increase the staff strength to 1,500-2,000 from the current 300 by the end of the fiscal.

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