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|August 13, 1998||
Digital India income climbs by 25 per cent
A Staff Writer in Bombay
Digital Equipment (India) Limited today announced its results for the fiscal ended June 27, 1998.
The company recorded an income of Rs 3.538 billion, an increase of 25 per cent over the previous year's figure of Rs 2.841 billion.
After providing Rs 88 million for tax against the previous year's figure of Rs 134 million, profit after tax was Rs 274 million, an increase of 8.5 per cent over the previous year.
The earnings per share works out to Rs 8.4 against the previous year's Rs 7.7. All the company's lines of business remained profitable.
The board of directors has recommended a dividend of 15 per cent on the equity share capital of Rs 327.3 million. The company had paid a dividend of 15 per cent for fiscal 1997.
Subsequent to the merger of Compaq Computer Corporation and Digital Equipment Corporation world-wide, the Company today announced changes in the board of directors of the company.
Paul Chan, vice-president and managing director, Asia Pacific Division of Compaq, has been appointed as chairman.
The new directors inducted are Tan Choon Seng, vice-president, finance and strategic planning, Asia Pacific Division of Compaq, and Ben Wells, vice-president and corporate treasurer, Compaq.
As already announced, Som Mittal, who continues as the managing director of Digital India, will head all of Compaq's businesses in India.
Paul Chan said, "As a result of the merger, Compaq is reviewing its structures on a world-wide basis. As part of this evaluation, Compaq is looking at all of its affiliate businesses in India to determine the best corporate structure going forward. Until such decision is made, the respective legal entities would continue as separate entities under a common management, thereby presenting a single face to the customer.
The board has approved a change in the name of the Company to 'Compaq Computer Technologies India Limited'. This change in name would more accurately reflect the new status of the Company as a subsidiary of Compaq. The change in name would be subject to shareholder and statutory approvals.
The results reflect an outstanding year for Digital India, said Som Mittal. "We have excelled in all areas of our business. Digital India's product business grew faster than the industry in a difficult economy. We also gained significant market share in the area of PC products during the period. Services and Software exports also showed good growth."
Nineteen ninety-eight was Digital India's tenth year of operation. The Company recorded a faster than industry growth in product volumes and emerged as number two in PC server sales and in the top five in desktop revenues for the year.
The Alpha line of products continued to harness major business opportunities, consequent to orders from Unit Trust of India, National Stock Exchange and Maruti Udyog, among others.
The year saw the launch of the Hi Note Ultra 2000, the world's thinnest Notebook with the largest screen. Sales through channels contributed to over 70 per cent of the total PC business revenues.
Digital India won its single largest order from the West Bengal State Electricity Board. Other firsts included the setting up of the country's first Internet Service Provider Competence Centre at Bangalore and the implementation of the first Intel/NT migration to Alpha/NT for SAP at Crompton Greaves early this year.
On the Services front, several new initiatives were introduced to consolidate Digital India's position as one of the leading services organisations in the country.
A unique support package for Microsoft products, the 'Service Box' was launched, while the 'Business Critical Services Initiatives' brought in business from Citibank, AT&T, JT Mobile and Ericsson India.
The largest IT outsourcing contract was signed between Reuters and Digital India.
The company retained its strong focus on partnerships, setting up the proof of concept centre in Calcutta with Price Waterhouse and the Banking Technology Centre at Bangalore with Infosys.
The year saw an enhancement of alliances; Oracle declared Digital India as its Best Platform Partner in India while with Microsoft, Digital India demonstrated a throughput of 20 million stock trade transactions per day on the Alpha/NT/SQL server combination on Scalability Day.
The company's software exports operations continued to register growth with the inclusion of a Y2K Centre and Telecom Development Centre. The strength of the division increased to include over 300 professionals.
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