Tulip IT Services net profit for FY06 up 265%, dividend at 10%

New Delhi, June 13 (UNI) Tulip IT Services Ltd, provider of end-to-end data connectivity, today reported a 265 per cent hike in its net profit to Rs 48.8 crore for the financial year ended March 31, 2006, as against Rs 13.91 crore for the same period last year.

The company's turnover stood at Rs 508.17, a 49 per cent increase from Rs 342.20 last year, and the Board of Directors has recommended a dividend of 10 per cent.

''The 265 per cent growth in our net profits has come mainly from Tulip Connect's Internet Protocol Virtual Private Network (IP/VPN) business, and it is this section which will primarily see a substantial growth in the future as well,'' Tulip IT Services Ltd MD Lt. Col H S Bedi told reporters here.

Tulip MPLS VPN connects stood at 9,513 as on March 31, 2006, and the company announced major expansion plans to increase the reach of TulipConnect.

''At present we have expanded to 540 cities from 350 cities in March, with a total investment of Rs 180 crore, and we are looking at expanding this network further to 800 cities,'' Mr Bedi said.

He, however, refused to divulge details of the quantum of investment.

He added that the company will be pumping in additional investment to launch four Level 3 Data Centers in Mumbai, Delhi, Bangalore and Chennai. Besides, the company will be increasing its staff strength from the present 850 to 1,500 employees.

Tulip's Wireless network is present across various fields including banking, stock-broking, manufacturing, telemedicine, education and rural connectivity.

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