Infotech Enterprises records 67% growth to cross Rs. 100 Crores threshold in financial year 2001-2002

• EPS at Rs.40.11 for the year
• 4Q Total Income higher by 52% and Net Profit higher by 86%
• Total Income crosses Rs.136 crore on Consolidated Group basis
• The Board of Directors recommend a BONUS ISSUE of 1:1 and a 24 % Dividend for the financial year 2001-02 2001

Hyderabad, India - April 24, 2002

Highlights:

Infotech Enterprises Limited: year-on-year performance

• Total Income up by 67% to RS 100.47 crore from RS 60.20 crore when compared to the previous year
• EBITDA grew by 92% to RS 43.90 crore compared to RS 22.91 crore in the previous year
• Net Profit before extraordinary item was higher by 67% at RS 28.76 crore compared to Rs.17.23 crore in the previous year
• Diluted Earning Per Share for the year was at RS 40.11 compared to RS 29.00 in the previous year, up by 38%
• 28 new customers were added during the year

Infotech Enterprises Limited: Fourth Quarter Performance

• Total Income up by 67% to RS 100.47 crore from RS 60.20 crore when compared to the previous year
• EBITDA grew by 86% to RS 12.19 crore compared to RS 6.57 crore in the corresponding quarter in FY 2001
• Net Profit was higher by 86% at RS 7.82 crore compared to RS 4.20 crore in the previous year
• Diluted Earning Per Share for the quarter was at RS 11.43 compared to RS 6.93 in the previous year, an increase of 65%

Infotech Enterprises Limited Consolidated Group performance during FY 2002

• Total Income was higher by 49% at RS 136.20 crore compared to RS 91.16 crore last year
• EBITDA increased by 60% to RS 41.63 crore compared to RS 26.06 crore
• Net Profit before extraordinary item was higher by 43% at RS 23.17 crore from RS 16.17 crore in FY 2001
• Diluted EPS for the year was at RS 31.36 during FY 2002 compared to RS 27.21 in the previous year

Human Resources

• Increased value across businesses resulted in higher revenues without significant change in human resources
• Shift in human resources profile during FY 2002 - conscious increase in the quality of resources. Engineers / MCAs constituted 40% of Infotech's employees at the end of FY 2002 compared to 23% in March 2001. Undergraduate / diploma holders count reduced to 43% from 67% a year ago
• GIS services division employed 60% of the billable resources at the end of FY 2002 compared to 79% at the end of the previous fiscal year. Engineering services and e-Solutions divisions employed 21% and 18% of the billable resources respectively in March 2002, compared to 5% and 14% last year

Corporate Developments during FY 2002

• Entered strategic relationship with Pratt & Whitney, one of the largest international aircraft engine manufacturers. This contract is the most significant engagement by an Indian company in the engineering services domain
• Executed end-to-end solutions for customers in India integrating GIS domain strengths with software solutions capability. Key customers include Noida Power Company and Hughes Tele.com
• Maintained high growth trend with acquisition of Advanced Graphics Software, a German company with engineering services skills. Further strengthened European presence with acquisition of MapCentric, a U.K. based IT company, through Infotech Europe
• Software development and services business successfully assessed at SEI-CMM Level 5 only eight months after the Level 4 assessment
• Sudhir Sethi, India head of leading venture capital Company Walden International, joined Infotech as President and Executive Director. Sudhir is responsible for sales and marketing; corporate and M&A strategy

Commenting on the results, Chairman and Managing Director, B.V.R. Mohan Reddy said, "I am extremely pleased to share our financial performance for the Financial Year 2001-02. This has been a year of exceptional business and profitability growth at Infotech in an uncertain operating environment.

The year saw Infotech record several key achievements that have taken us forward in our ongoing quest for excellence. We crossed the threshold revenue figure of Rs.100 crore, a remarkable increase of over 10 times in the last four years. Our consolidated group revenues climbed to RS 136 crore during the year.

We extended our relationship with Pratt & Whitney to enter a strategic business alliance, the most significant ever by an Indian engineering company.

Our focus on complete customer ownership has manifested itself in evolving quality systems and processes that enable delivery efficiency and contribute to customer value enhancement. We have been assessed at SEI-CMM Level 5 within only eight months of the Level 4 assessment, a reflection of our rapid move up the quality curve.

The operational integration of our subsidiaries to the Group operations continues to be on course. Acquired companies, which had local development capability, are moving towards Infotech's offshore delivery model very successfully. These subsidiaries are also making investments in the areas of Engineering Services and Software Development to extend their service capabilities.

Finally, I would like to add that we have moved closer towards our objective of gaining global recognition as a leading provider of cost-effective quality IT services and we will continue our efforts to translate this success into value for all our stakeholders."

YEAR ON YEAR PERFORMANCE

Total Income
Total Income was at RS 100.47 crore for the year ended March 31, 2002, an increase of 67% over RS 60.20 crore for the corresponding period of the previous year.

Earnings before Interest, Depreciation and taxation (EBITDA)
The Company reported Earnings before depreciation, interest and taxes (EBITDA) of RS 43.90 crore for the year showing an impressive growth of 92% over the previous year figure of RS 22.91 crore. Operating expenses were at RS 56.57 crore for the year ended March 31,2002 as against RS 37.29 crore last year, showing an increase of 52%.

Profit After Tax
Net profit after tax was at RS 25.63 crore - an increase of 49% over RS 17.23 crore in the previous year.

Earnings Per Share
Earnings per share was at RS 40.11 on a fully diluted basis (on par value of RS 10 per share), 38% higher compared to RS 29.00 for the previous year.

Segment With Performance

GIS Services: Revenue contribution from this division grew by 24% to RS 53.18 crore compared to RS 42.85 crore during the corresponding period last year. The division's contribution to the Company's total sales declined to 55% in FY 2002 from 74% last year.

Engineering Services: Revenue contribution from this segment grew by over five times to RS 21.10 crore compared to RS 3.67 crore during the previous year. As a percentage of total sales, engineering services contributed 22% up from only 6% last year.

Software Development & Services: Revenue contribution from this segment grew by 111% to RS 23.16 crore compared to RS 11.00 crore during FY 2001. The division contributed 24% to the Company's total sales in FY 2002, up from 19% last year.

Geographic Mix:
Revenues from the North American market grew by 66% to RS 71.03 crore compared to RS 42.85 crore in the previous year. As a percentage of total sales, the contribution from North America has declined marginally to 73% from 74% last year. Infotech has initiated aggressive marketing efforts in the continent.

Revenues from Europe grew by 66% to RS 18.15 crore compared to RS 10.92 crore in FY 2001. As a percentage of total sales, contribution from this geography was 19%. Infotech's presence and business development efforts in Europe are supplemented by market coverage provided by its subsidiaries.

Sales revenue from the Asian region (including domestic Indian sales) grew by 120% to RS 8.26 crore compared to RS 3.75 crore during the same period last year. As a percentage of total sales, the region contributed 8% compared to 7% last year. These markets continue to provide strong growth opportunities.

Client Details
During the year the company added 28 new customers. Top 10 customers accounted for 85% of total sales during the year ended March 31, 2002.

Human Resources
Infotech had 1900 employees as of March 31,2002. There were 580 gross additions during the year, predominantly in engineering and software services divisions. Gross additions were offset by voluntary and compulsory separations, mostly of Diploma Engineers in the GIS Services division. This shift in the profile of employees is in line with Infotech's focus on higher contribution from value added services. Manpower additions were predominantly experienced Post Graduate engineers. As a result Infotech employed 40% engineers / MCAs at the end of FY 2002 compared to 23% a year back. The percentage of diploma / undergraduate employees came down to 43% from 67%. Infotech's employees with over five years of experience more than doubled to 251 from 115 at the end of FY 2001. The proportion of such employees to the total head count increased significantly to over 13% compared to 6% last year. Employees with less than one year experience reduced to 184 from 326 a year ago. Overall Infotech generated higher revenues during FY 2002 despite marginal net addition in its human resources.

Fourth Quarter Performance Analysis

Total Income
The total income was RS 27.75 crore for the quarter ended March 31, 2002, an increase of 52% over Rs.18.27 crore for the corresponding period previous year.

Earnings before interest, depreciation and taxation (EBITDA)
Earnings before depreciation, interest and tax (EBITDA) were up by 86% to Rs.12.19 crore compared to Rs.6.57 crore in the corresponding period previous year. Operating expenses were at RS 15.56 crore for quarter ended March 31, 2002 as against RS 11.70 crore in the corresponding quarter last year, showing an increase of 33%.

Profit After Tax
Net profit after tax was reported at RS 7.82 crore - an increase of 86% from RS 4.20 crore in the corresponding quarter last year. EARNINGS PER SHARE Earnings per share were at RS 11.43 on a fully diluted basis, 65% higher compared to RS 6.93 for the previous year.

About Infotech
Infotech Enterprises is a leading Indian leading software services company with a proven track record for delivering high quality software products and services on a global scale. Infotech offers end-to-end solutions in the areas of GIS, Engineering and e-Business. Its range of services includes Digitization of drawings/maps, Photogrammetry, Application Software Development, Software Products Development, Consulting and Implementation. Infotech has an ISO 9002, ISO 9001, ISO 9001:2000 and SEI CMM Level 5 certification covering its lines of business. It has developed a strong infrastructure backbone that includes state-of-the-art technology centers are located at Hyderabad, Mumbai and Bangalore; a digitization center is the largest in India and among the top three in Asia Pacific region; fully owned subsidiaries in USA, UK and Germany; and 1900 IT professionals worldwide.

Please note: Some statements contained within this report may be of a forward-looking nature and may involve risks and uncertainties. Actual future results and outcomes may differ materially from those discussed. Factors that may cause such differences include, but are not limited to, management of growth, market acceptance of the Company's products and services, risks associated with new product versions, dependence on third party relationships and the activities of competitors.