Wealth Creation

Rolta's excellence in operations has translated into world-class infrastructure, a distinguished brand and formidable human capital, resulting in consistent profitability and greater returns to all its stakeholders.

Rolta has been profitable since inception; it has paid dividends consistently since its IPO in 1990. The improvement in the performance of the company has been reflected in the company's market capitalisation and dividend outgo. Rolta is in the business to provide attractive returns to its stakeholders. Rolta has been ranked amongst the top 10 wealth creators amongst all the mid-cap stocks by Hindustan Times, on September 20, 2007. As per the shareholding pattern on September 30, 2007, over 40% of the company's shareholders comprised Foreign Institutional Investors.

There has been robust all round growth in the company's revenue, profitability, EPS and assets since its IPO. Post IPO, revenue has grown from Rs. 40.9 million in 1990 to Rs. 7216.6 million in 2007. Net profit has grown from Rs. 9 million in 1990 to Rs. 1,726.4 million in 2007, while gross assets have grown from Rs. 1386.9 million in 1990 to Rs. 18414.5 million in 2007. The company's market capitalisation has increased from about Rs. 300 million at the time of initial listing, to over Rs. 45,000 million towards the close of September 2007. Rolta's cash in hand as on June 30, 2007 was Rs. 7365.6 million.

Rolta has not only met investor expectations through conventional parameters; its performance meets analyst expectations through demanding sophisticated financial filters as well. EVA in 2006-07 is Rs. 404 million (US $ 10.1 Million) as compared to Rs. 46 million (US $ 1.15 million), ten years ago. EVA as a percentage of net profit after tax is a healthy 22.17% in 2006-07. For ease of use the exchange rate has been taken as US $ 1 = Rs. 40.

Over the past 25 years Rolta has built and owns world-class infrastructure and facilities across the globe. The vision of creating and owning real estate, as opposed to the short cut of leasing, has created an asset that now has a market value of over Rs 10,000 million (US $ 250 million). This approach has strengthened our balance sheet and resulted in improved profitability of millions of dollars due to savings on leasing/rental outflows. We now have over 10 million sq. ft. of facilities ready and/or under development to meet our growing needs.

Over the years, Rolta has developed exceptional Intellectual Property Rights (IPRs). Worth over a few hundred million dollars, these 1600+ registered IPRs not only enable the company to provide its services more cost-effectively but also provides it a competitive advantage while offering complete solutions.

The Rolta brand is more than a logo or a name; it is a mark of trust that customers and investors have come to rely on at all times. The value of the Rolta brand is estimated at Rs. 15,405 million for 2006-07.

The definition of wealth as a source of income inevitably leads to the recognition of human capital as one of the several forms of wealth. The value of the human resources of the company and its subsidiaries has been estimated at Rs. 62,821 million.

In line with its growing status and influence, the Rolta scrip is considered highly liquid and listed on NSE in the cash and F&O segments, the BSE 'A' Group and the London Stock Exchange. It also forms part of CNX IT, CNX 500, NSE Midcap 50, BSE Midcap, BSE 200, BSE IT and BSE TECK indices. Rolta FCCBs are listed on the Singapore Stock Exchange.

We are committed to provide outstanding returns to all our stakeholders and long-term wealth creation is the aspiration that governs all our business actions.

3 Important Points:

• Market cap of over Rs. 45,000 Million (US $ 1.1 Billion)
• Rolta brand valued at Rs. 15,405 Million (US $ 385 Million)
• Rolta human resources valued at Rs. 62,821 Million (US $ 1.57 Billion)