Tulip IT net grows 132% on new clientele

BS 200 SCORECARD

Tulip IT Services, a data connectivity service provider, posted a 132 per cent increase in net profit to Rs 27.48 crore during the quarter ended December 31, 2006, compared with Rs 11.87 crore during the same period of the previous year.

The company's net sales were up 64 per cent to Rs 222.22 crore during the December 2006 quarter as compared with Rs 135.10 crore for the corresponding quarter last year.

"Customer acceptance of our wireless-based IP VPN network and substantial increase in the number of customers resulted in more than 100 per cent growth and we expect the growth to continue," said H S Bedi, managing director, Tulip IT Services.

The company added around 50 to 60 customers, including Bajaj-Allianz and ICICI Bank. "Our extensive and wide network helped us to get new clients and retain the existing customer base," Bedi added.

The company is planning to expand base in rural India and the new team will help the company achieve its target. In the last one year, the company has added nearly 750 customers and expects to double the number in a couple of years, he said.

The company deployed its initial public offer (IPO) proceeds partly in expanding its wireless-based IP VPN presence across the country and for working capital requirement, while the balance funds have been invested in liquid mutual funds and fixed deposits with banks, Bedi added.