BSE AND NSE have granted ’In Principle’ approval for the scheme of arrangement of 12 group Companies with the Company. The arrangement, if approved, shall be effective from 1^st Jan’07.

The Company during the current year allotted 55600222 equity shares on preferential basis to FIIs at Rs 1229.51 per share (inclusive of share premium of Rs 1219.51 per share). The funds so raised, are being deployed, in Company’s ongoing projects relating to the construction of IT parks at Rai and Manesar (Haryana) and projects relating to hospitality.

Consolidated Performance

Quarter ended Sep’07

Net sales increased by 243%, over the corresponding previous quarter, to Rs 156.24 crore. Operating margins also spurted by an impressive 740 bps to 95.4% and this catapulted operating profit to Rs 149.06 crore, an increase of 272% over the corresponding previous quarter. All expense heads reported decline as a percentage to sales, net of stock adjustment. Material consumed fell by 425 bps to 1%, staff cost declined by 10 bps to 0.9% and manufacturing and other expenses fell 410 bps to 2.7% of sales, net of stock adjustment.

Other income was reported at Rs 7.45 crore as compared to Rs 0.66 crore in the corresponding previous quarter. Interest expense declined by 78% to Rs 0.05 crore and depreciation was up by 22% to Rs 1.29 crore. PBT posted an overwhelming growth of 294% at Rs 155.17 crore. As effective tax rate rose by 115 bps to 32.55%, net profit posted a growth of 287% only at Rs 104.67 crore.

Six-month period ended Sep’07

Net sales were recorded at Rs 303.47 crore, an increase of 263% on a y-o-y basis. OPM growth of 965 bps to 94.2% helped the Company quadruple the operating profit to Rs 285.85 crore. OI recorded a mammoth growth of 554% at Rs 10.08 crore. As interest cost declined by 60% and depreciation appreciated by 13% only, PBT was reported at Rs 293.23 crore, an increase of 322% over the corresponding previous period. A degrowth of 280 bps in tax rate to 29.53% helped the Company to post 339% increase in bottomline at Rs 206.64 crore.

Standalone Performance

Quarter ended Sep’07

Net sales got eroded by 29% to Rs 32.37 crore. OPM declined by 1020 bps to 77.8% and resultantly, operating profit was reported at Rs 25.20 crore, degrowth of 37% over the corresponding previous quarter. Raw-material cost declined by 55 bps to 4.7% of sales net of stock adjustment. However, margins came under pressure as staff cost and manufacturing & other expenses increased by 345 bps to 4.5% and 635 bps to 13.2% of sales, net of stock adjustment, respectively.

Other income was recorded at Rs 7.05 crore as compared to Rs 0.66 crore in the corresponding previous quarter. Interest cost declined by 82% and depreciation increased by 22%. PBT posted a decline of 22% at Rs 30.91 crore. A decline of 425 bps in tax rate to 27.16% helped the Company to restrict the bottomline degrowth at 17%.

Six-month period ended Sep’07

Net sales, for the six-month period ended Sep’07, was recorded at Rs 136.64 crore, an increase of 63% on a y-o-y basis. An improvement of 265 bps in OPM at 87.2% led the Company post operating profit at Rs 119.13 crore, an increase of 68% on a y-o-y basis. OI was reported at Rs 9.50 crore. As interest cost decreased by 62% and depreciation rose by 13% only, PBT reported a sharp jump of 81% to Rs 125.94 crore. Tax rate declined by 860 bps to 23.73% and with this, bottomline more than doubled to Rs 96.06 crore.

Other information:

• Promoters’ stake was at 61.04% as on 30^th Sep’07 as against 59.36% as on 30^th Sep’06.
• The scrip closed at Rs 346.65 as on 2^nd Nov’07 on BSE.