For the six months ended September 2004, revenue was up by 53% to Rs 42.24 crore and net profit was higher by 86% to Rs 9.78 crore.

Sequential Performance:

For the quarter ended September 2005, Allsec reported a 31% QoQ growth in the topline to Rs 23.96 crore on the back of earnings from new facility which started flowing during the quarter ended September 2005. Currently, Allsec is operating in 500 seats and by the end of FY2006; plans to utilize the remaining 500 seats facility. During the quarter under review, OPM expanded marginally by 60 bps to 29.1%. Thus operating profit was up by 34% to Rs 6.98 crore. With interest cost down by 38% to Rs 15 lakh and depreciation cost increasing by 88% to Rs 1.84 crore, PBT was higher by 26% to Rs 5.08 crore. During the quarter there was no provision for current tax, however there was a tax credit of Rs 75 lakh as compared to a tax liability of Rs1lakh in the sequential quarter ended June 2005, coupled with a provision for Fringe benefit tax for Rs 1 lakh, which was down by 80% QoQ. Thus the resultant net profit for the quarter ended September 2005 was higher by 47% to Rs 5.82 crore.

On YoY basis, revenue grew by 58% to Rs 23.96 crore. OPM was marginally down by 60bps to 29.1%, thus operating profit was higher by 55% to Rs 6.98 crore. There was a gain in the other income level at Rs 9 lakh as compared to a loss of Rs 9 lakh in the corresponding quarter previous year. Thus PBIDT was up by 60% to Rs 7.07 crore. With interest cost down by 64% to Rs 15 lakh and depreciation cost increased by 86% to Rs 1.84 crore, PBT was higher by 69% to Rs 5.08 crore. During the quarter under review, there was no provision for current tax, however there was a tax credit of Rs 75 lakh as compared none in the quarter ended September 2004, coupled with a provision for Fringe benefit tax for Rs 1 lakh, against none in the corresponding quarter previous year. Thus the resultant net profit for the quarter ended September 2005 was higher by 94% YoY, to Rs 5.82 crore.

For the six months ended September 2005, revenue was up by 53% to Rs 42.24 crore. OPM was remained unchanged at 28.9% as total expenditure as a percentage of revenue remained more or less same at 71%. Thus operating profit was higher by 53% to Rs 12.21 crore. During the six months ended September 2005, interest cost was down by 51% to Rs 39 lakh and depreciation cost increased by 45% to Rs 2.82 crore, thus PBT was higher by 74% to Rs 9.11 crore. During the period, there was no provision for current tax, however there was a tax credit of Rs 74 lakh coupled with a provision for Fringe benefit tax for Rs 7 lakh, against none in the corresponding period previous year. Thus the resultant net profit for the six months ended September 2005 was higher by 86% to Rs 9.78 crore.

For the financial year ended march 2005, consolidated revenues were up by 187% (on annualised basis) to Rs 57.55 crore. OPM stood at around 27.7% as compared to a negative margin of 43% in the corresponding previous year (15 months). Thus there was profit at operating profit level of Rs 15.92 crore against a loss of Rs8.61 crore (15-months annualised figure) in the corresponding previous year. During the financial year ended March 2005, interest charges was down by 17% to Rs 1.40 crore and depreciation cost was marginally up by 2% to Rs 4.08 crore, thus there was profit at the PBT level Rs 10.44 crore against a loss of Rs 13.78 crore (15-months annualised figure) in the corresponding previous year.

During the period, provision for current tax stood at Rs 5 lakh against a credit of Rs 7 lakh in the corresponding previous year and deferred Tax credit was up by 724% to Rs 1.45 crore. Thus there was a profit at the net profit level at Rs 11.84 crore against a loss of Rs 13.54 crore in the corresponding previous year.

• The share of Allsec largest client (Compucredit) in the topline declined during the quarter under review to 45.8% from 50.6% in the sequential quarter ended June 2005,however in absolute terms the revenues increased by 18.5%.

• The company also added two new non-voice processes from Compucredit this quarter. Compucredit is expected to ramp up, going forward, but its contribution to the revenues is expected to reduce further as the company adds new clients.

• In a bid to diversify its risk and increase the seat utilization, Allsec added one client in the voice business in Australia. The pilot project from this client is expected to start from November onwards and has the potential to ramp up to 200-250 seats.

• Allsec has also tied up with an Australian BPO company to jointly market its CQM (call quality monitoring) services. Currently, the company is servicing one client in this segment but expects to add 2-3 new clients shortly. CQM helps Allsec in utilizing its seats more effectively as it is a daytime work and is done offline.

• The company has also tied up with an accounting back office company in US where it will exclusively handle deliveries from India. The project is estimated to start with 30 employees but ramp up to 100 employees by this fiscal end.

Valuation:

The scrip is trading around Rs 216 on the BSE On equity of Rs 12.06 crore and face value of Rs 10; this discounts the company’s second quarter annualised EPS of Rs 19.3, about 11.2 times.