Scandent Announces Financial Results For Sep-05 Qtr

Revenues of $ 18.26 Million (INR 797.6 Million), Up 2.7 % over Previous Quarter, Up 24.8% year-on-year (YoY)1
Operating Income of $ 3.15 Million (INR 137.7 Million), Up 9.2 % over Previous Quarter, Up 67.6% YoY
Profit After Taxes of $ 1.94 Million (INR 84.6 Million), Up 14.1 % over Previous Quarter, Up 21.8% YoY

Bangalore, India – October 28, 2005: Scandent Solutions Corporation Limited ("Scandent") announced today its results of operations for the Sep' 05 quarter. Total revenues for this quarter were $ 18,256,598 (INR 797,625,048) compared to total revenues of $ 17,776,492 (INR 774,998,169) for the previous quarter, a growth of 2.7 %. The growth in revenue over the corresponding period previous financial year was 24.8%.

Operating Income was $ 3,152,154 (INR 137,716,608) up by 9.2 %, compared to an operating income of $ 2,886,078 (INR 125,823,765) for the previous quarter. The growth in operating income over the corresponding period previous financial year was 67.6%. For the quarter ended Sep 30th, 2005 total earnings after taxes were $ 1,936,435 (INR 84,602,229) compared to $1,696,891 (INR 73,979,006) for the previous quarter, an increase of 14.1%. The growth in net profit over the corresponding period previous financial year was 21.8%.

The company's earnings per share on a fully diluted basis for the quarter was Rs. 2.89. On an annualized basis the earnings per share was Rs.11.56.

This is the fifth quarter of sequential growth in revenues and operating income after the company consummated its merger with the IT division of SSI Limited.

The company's three core verticals, Banking, Financial Services and Insurance (BFSI), Government and Manufacturing & Logistics, contributed 30%, 23% and 47% of the Sep' 05 Qtr revenues respectively. The US operations of the company contributed 69% of the total revenues with its Asia Pacific operations at 16% and Europe at 15%.

The company has been successful in increasing its operating and net margins on a sustained basis over the last 5 quarters. The operating margins have improved from 13% in Sep 04 to 17% in Sep 05. The net profit margins excluding extraordinary items improved from 7% to 11% in the same period.

The company added 18 new clients during this quarter and the number of clients with an annual revenue run rate tracking at greater than $1 million increased to 15 from 14 in the previous quarter.

1. Sep Qtr 05-06 as compared to Sep Qtr 04-05

Conference Call
A conference call with the analysts has been scheduled at 6.30 PM on Friday, November 4, 2005 to discuss the quarter's results. The details of conference call would be intimated in due course.

About Scandent Solutions Corporation Ltd (“Scandent”)
Scandent is a broad based IT services company that offers business consulting, application implementation, software engineering, maintenance and support services. It is promoted by Scandent Group, which has in its fold IT and BPO companies that collectively employ 3,500 professionals serving customers in 3 continents through 70 locations worldwide. Scandent strives to deliver differentiated solutions with impeccable quality. The services of the firm include strategy, application implementation, software engineering and support solutions. For more information about Scandent, visit www.scandentsolutions.com

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