Digital Globalsoft Ltd, the Indian subsidiary of Global IT major, HP, reported on Monday a net profit of Rs 30.2 crore (Rs 302 million) during April to June 2003, an increase of 9.4 per cent over Rs 27.6 crore (Rs 276 million) recorded in the first quarter last year.

Revenues increased by 38 per cent to touch Rs 140.2 crore (Rs 1.4 billion) in the first quarter as against Rs 101.62 crore (Rs 1.02 billion) during April to June 2002, a company statement said.

"The encouraging increase in revenues from HP demonstrates our parent's sustained commitment and confidence in Digital's capabilities and operating model," Digital chairman Peter Mercury said.

Digital's quarter-on-quarter revenue over the fourth quarter of last year shot up by 10 per cent and net profit shot up by 0.5 per cent.

Commenting on the outlook for 2003-4, Digital CEO Som Mittal said it was in the process of "re-establishing its growth momentum" and remained positive enabled by the creation of the company as the consolidated focal point for HP services global delivery initiatives from India.

Digital hired 747 people during the first quarter, with the recruitment driven by increase in Digital Contact Centre Employees, its business process outsourcing operations, which now has 1,000 workers.

The company said it was doubling the size of existing facilities besides acquiring additional five acres of land near its campus in Bangalore for expansion.

HP's business during the current quarter touched over Rs 100 crore (Rs 1 billion) and independent business increased to Rs 26.2 crore (Rs 262 million), while HP-referred external business declined to Rs 5.7 crore (Rs 57 million).