On a Q-o-Q basis the company has reported a 11% rise in net sales to Rs 30.83 crore. The OPM has also improved by 130 basis points to 28.9% resulting in 16% increase in operating profit to Rs 8.09 crore. After 50% decline in interest to Rs 0.20 crore and with a marginal 1% increase in depreciation to Rs 2.03 crore the PBT ended at Rs 7.47 crore a rise of 12%. The subsequent net profit stood at Rs 7.41 crore as against Rs 6.78 crore in the immediate previous quarter indicating a rise of 9%.

Highlights of the call

• Revenues during the quarter grew 11% sequentially. The growth was brought about by the sustained volume growth in non-CCRT accounts and the rupee depreciation.

• Revenues from Compucredit (CCRT) de-grew by about 20% on a sequential basis in line with the seasonal character of this business. The management has indicated that revenues were lower due to the lower number of calls required to be made to clients because of the vacations.

• CCRT contributed 30% of the revenue for the quarter ended Sept’06 and 35% of the revenue for the half year ended Sep’06.

• With funds after investment by private equity firm First Carlyle in Allsec, the company is currently looking at multiple acquisitions

• Allsec acquired B2K in FY06. B2K is involved in e-mail and tech support activities. By virtue of this acquisition, Allsec has been able to broaden its range of services.

• Allsec added 566 net employees taking the total number of employees to 2,744. On a gross level, the additions during the quarter stood at 804 employees.

• The attrition during the quarter was at about 20%, which is due to several employees leaving post the training program and also several employees leaving for further studies.

• During the quarter, Allsec acquired two new clients in its voice business and three clients in its platform-based HR processing business.

• There was no exchange rate gain during the quarter ended Sept’06 as against an exchange gain of Rs 0.65 crore during the quarter ended Jun’06.

• During the quarter, margins remained stable despite some incentives provided to some employee. The impact was set off due to lower communication expenses (as a percentage of revenues) and also savings on SG&A expenses.