Rediff.com India Limited, a leading online news and shopping service provider, has reported an increase of 53 percent in profits during the first quarter of this fiscal compared to the same period last year.

Rediff's revenues for the quarter ended June 30 were $4.2 million, and that was mainly driven by a 114 percent growth in India Online revenues to $2.7 million, compared to $1.3 million during the same quarter last fiscal year, a company statement said here.

The company's revenues from US Publishing - India Abroad and Rediff USA online - also registered a jump of three percent that is $1.53 million, compared to $1.5 million achieved during the quarter ended June 30, 2004.

However, the operating expenses of the company have increased by 40 percent to $2.7 million for first quarter of this fiscal, compared to $1.9 million for the same quarter last fiscal.

The company's total cash and cash equivalents and short term deposits with banks was approximately $9.4 million as of June 30, 2005.

According to the company statement, the jump was primarily due to growth in online advertising services and mobile services.

Rediff's user base also grew by 19 percent to 37.5 million by June 30.