During the quarter-ended March 2005, Scandent Solution has added 3 more clients of annual revenue greater than $1 Million in their kitty taking the total clients number of those clients to 13 as on March 31^st 2005.

Sequential performance

For the quarter-ended March 2005, revenue of Scandent solution has gone up by 3% to Rs 72.22 crore. OPM for the quarter-ended March 2005 was down marginally by 20 basis point to 14.6%. Thus operating profit was up 4% to Rs 10.54 crore. On the other hand other income was dropped by 44% to Rs 74 lakh, leading to a PBIDT of Rs 11.28 crore which is down marginally by 1% for the quarter ended March 2005. Financial charges for the quarter under review has gone up by huge 92% to 1.36 crore thus PBDT was down by 8% to Rs 9.92 crore. Depreciation cost was increased by 4% to Rs 2.76 crore thus PBT dipped by 11% to Rs 7.16 crore. Current tax charges for the quarter ended March 2005 was stood at Rs 70 lakh against a nil in the sequential preceding quarter whereas deferred tax credit was stood at Rs 3.19 crore in the quarter under review against a nil in the sequential preceding quarter. Thus, the resultant PAT grew by 19% to Rs 9.65 crore.

Consolidated financial of financial year 2004-05 cannot be compare with the corresponding previous since, company does not have a comparable financial in corresponding previous year.

During the financial ended March 2005 Scandent solution has posted a topline of Rs 243.28 crore, while the OPM was stood at 12.7% leading to an operating profit of Rs 30.93 crore. Other income for the financial year ended March 2005 was marked at Rs 1.27 crore while PBIDT stood at Rs 32.20 crore. During the financial ended March 2005 interest and depreciation cost was stood at Rs 5.51 crore and Rs 26.69 crore respectively. Thus PBT before prior period item and EO was sealed at Rs 13.86 crore. For FY 2004-05,there was a prior period item of Rs 59 lakh and non-recurring income of Rs 2.43 crore pertaining to written back of certain liabilities. Thus PBT after prior period items and EO was marked at Rs 15.70 crore.

Tax charges for the financial year 2004-05 stood at 70 lakh whereas there was a deferred tax credit of Rs 3.19 crore for the period under review. Thus the resultant net profit for FY 2004-05 was stood at Rs 18.19 crore.

Vertical Performance

The company have three core verticals, Banking, Financial Services and Insurance (BFSI), Government and Manufacturing & Logistics. The manufacturing and logistics domain contributed 47% of the total revenue in the quarter ended March 2005 against 45% in the sequential preceding quarter. On the other hand Banking, Financial Services and Insurance (BFSI) segment contribution remained unchanged at 27% in the quarter under review as compare to the preceding quarter. Government domain contribution was slightly down to 26% in the quarter-ended March 2005 as compare to 28% in the sequential preceding quarter.

Geographical break –up

For the quarter-ended March 2005, US operations of the company contributed 73% of the total revenues with its Asia Pacific operations at 12% and Europe at 15% against 76%, 10% and 14% respectively in the sequential preceding quarter.

Revenue by project type

During the quarter ended March 2005, company’s revenue quality and mix remained largely unchanged and stable with 52% coming from fixed price contracts and 48% from time and material engagements.

Offshore and Onsite mix

For the quarter ended March 2005, offshore work as a percentage of effort increased to 35% (up from 31% of the previous quarter) and onsite work decreased to 65% (down from 69% of the previous quarter).

Clients Data

The number of clients with an annual revenue run rate tracking at greater than $1 Million grew from 10 in the quarter ended December 2004 to 13 in the quarter ended March 2005.

Management comments

Chris Sinclair, Chairman of Scandent, said, "We are very pleased with our sequential progress. We have added a number of prestigious clients, diversified our revenue base, improved our revenue quality and achieved CMMi 5 and PCMM 3 certifications during the year, while optimizing our operating margins and introducing new offerings."

• Ashok Leyland, India's leading transport solutions company, has chosen Matrix One India, the subsidiary of Scandent Solution for its product suite to provide an end-to-end PLM (Product Lifecycle Management) solution for the company. The value of the contract for both Matrix One licenses and implementation services is US$ 1.5 million and the implementation would be done by teams from the company and Ashok Leyland.

• Panorama Software, a global leader in business intelligence (BI) solutions for the Microsoft

platform, has entered into an integrated partnership agreement with Scandent Group Inc. a subsidiary of Scandent Solution This agreement will enable Scandent to enhance its business intelligence and knowledge service practice. Through Panorama’s proven BI offerings, Scandent will be able to provide Microsoft-centric solutions to its customers and expand its delivery options to these organisations. Additionally, through their dedication to the Microsoft platform, the companies will also able to drive greater customer value through combined offerings, enabling customers to achieve improved performance and better business results.

• During March 2005, Scandent Solution has got a multi-million dollar deal from the Dhaka Stock Exchange (DSE) to upgrade the bourse's electronic trading system.

Valuation

The equity share capital stands at Rs 28.73 crore and face value is Re 10 per share. The stock is trading around Rs 180. P/E on the FY 05 EPS of Rs 4.9 stands at 37. However P/E on annualised March’05 quarter EPS is 13 times.