Polaris income grows to Rs. 1,117 crore

… Annual income grows 22%, quarter income grows 19% (in $ terms)

Chennai, 23 April 2008: Polaris Software Lab Limited (POLS.BO), a Nasscom Top 10 company and the leader in Specialty Application Development in Banking, Financial and Insurance sector, has announced fourth quarter and annual results for FY 2007-08.

For the year ended 31 March 2008, the total income was Rs 1,117.41 crore. Operating profit (EBITDA) was Rs 136.30 crore and profit after tax (PAT) was Rs 73.21 crore. The company recorded 22% growth in total income in dollar terms.

For the quarter ended 31 March 2008, total income was Rs 290.06 crore. Operating profit (EBITDA) was Rs 36.21 crore and profit after tax (PAT) was Rs 21.45 crore.

During the quarter, the company recorded 14 new wins. The company also signed a Master Services Agreement with a Fortune 10 Bank in North America.

The Board of Directors recommended a final dividend of 30% on the paid up capital of the company for fiscal 2008.

The Board of Polaris Software Lab Limited considered a proposal of buy-back of its equity shares and had discussions on this subject. In the course of the discussions, Members of the Board drew attention to the real estate investments made by the Company and suggested that the best options to maximize shareholder value from these investments should also be explored.

The Board accordingly decided to defer its decision on the buy-back of equity shares and appointed a committee of the Board to give recommendations to enable the Board to take a decision at its next meeting.

Financial Information Overview for the quarter ended March 2008
Indian GAAP Consolidated

Q4 Income Rs. 290.06 crore , Up 19% YoY in $ terms, 6% in Rupee terms

Profit After Tax Rs. 21.45 crore, Up 12% sequential QoQ in Rupee terms

Intellect Business contributes 20% to revenues, annual revenues grow 23%

1. Intellect Wealth Management Platform went live in one of the largest Private Sector banks in India.
2. Intellect Cash & Liquidity Platform went live in one of the largest banks in Southern Europe.
3. Intellect Liquidity Platform went live in one of the Fortune 10 banks in Europe.
4. Intellect Custody Platform has become the Market Leader in the Indian Market.

Polaris ranked #1 in Specialist testing capability for the global BFSI segment

Over 1100 employees specialize in testing services for the global BFSI segment. 90% of Polaris’ testing practice revenues come from the BFSI segment. The company was rated among the Top 3 in the Global financial services testing specialists report and ranked 1st among Specialty testing players by Gartner (one of the world’s leading information technology research and advisory company).

Polaris has a truly global Application Certification Enterprise, with Application Performance Diagnostics and Managed Testing Services being offered out of Canada, Northern Ireland, India and Sydney.

BPO Business grows 90% YoY

Optimus Global Services, Polaris’ BPO subsidiary focusing on the high-growth Indian market for complete banking process outsourcing, recorded a growth of 89.71% (in rupee terms) on a YoY basis and 11.2% on a sequential QoQ basis.

Consulting

Polaris was ranked by Tower Group (a leading research and consulting firm focused on the global financial industry) among the world’s Top Professional Services Consulting organizations along with the Tier 1 players in the IT and business consulting segments. Polaris won a significant consulting engagement with a leading bank in UK for Progressive Modernisation of Core Banking platform.

Mr. Arun Jain, Chairman & CEO, Polaris Software Lab Ltd., said, “With the knee jerk reaction to subprime crisis happening in large banks, our strategy to invest into products has the potential to explore markets beyond US and UK. We are planning to expand our distribution footprint through partnerships and by exploring new markets”.

Mr. Arup Gupta, President & COO, Polaris Software Lab Ltd., said, “We have doubled our strategic account landscape from 40 accounts two years back to 80 accounts currently. We completed 12 critical lighthouse** implementations of Intellect this year”.

Mr. R Srikanth, Executive Vice President & CFO, Polaris Software Lab Ltd., said, “Our singular focus on the profitability levers has resulted in the increase in net profit for the quarter by 12%. Our revenues for the next year are hedged at an average rate of Rs. 40.07 against USD.”

** The term lighthouse is used in Polaris to denote Intellect Platform implementations in Tier 1 banks and financial institutions
Financial Results for the Quarter ended March 31, 2008
Consolidated Profit and Loss account of Polaris Software Lab Limited
About Polaris Software Lab

Polaris Software Lab (POLS.BO), a NASSCOM Top 10 company, is a recognized global leader in Specialty Application Development for the Banking, Financial and Insurance sector, with its comprehensive portfolio of products, specialized outsourcing and modernization services and consulting. Polaris has a talent strength of over 10,000 solution architects, domain experts and technology experts and owns the largest set of Intellectual Properties in the form of a comprehensive product suite and nine banking platforms namely Intellect Cash and Liquidity Management, Intellect Risk and Treasury Platform, Intellect Wealth Management, Intellect Core Banking, Intellect Consumer Finance, Intellect Credit Cards, Intellect 787 (Intellect Universal Banking), Intellect Front Office and Intellect Investor Services Platform. Headquartered in Chennai, Polaris has its Corporate Banking Solution Centre in Mumbai, Investment Banking Solution Centre in Hyderabad, Risk and Treasury Solution Center in Mumbai, Retail Banking Solution Centre in Chennai and Enterprise Solution Centre in Delhi. Polaris has offices in Tokyo, Sydney, Hong Kong, Singapore, India, Dubai, Bahrain, Riyadh, London, Belfast, Zurich, Frankfurt, Toronto, New York, Chicago, Fremont and Chile.

For more information, please visit http://www.polaris.co.in/.