Financial Daily from THE HINDU group of publications
Thursday, Jul 17, 2003
Info-Tech - Financial Performance
Hughes Soft Q1 net rises 245 pc
New Delhi , July 16
THE communication software developer, Hughes Software Systems (HSS), on Wednesday announced a 245 per cent jump in its first quarter net profit, and scaled up sales and profit growth expectations for the current fiscal on the back of better than expected results.
The net profit of HSS, a subsidiary of the US-based Hughes Electronics Corporation, rose to Rs 15.2 crore in the quarter ended June 30, up from Rs 4.4 crore in the corresponding period a year ago.
Sales increased by 61 per cent to Rs 76.5 crore.
The HSS board of directors approved these results at a meeting held in Germantown, US, on Tuesday.
Buoyed by the performance, HSS now expects its net profit to grow by 60-70 per cent in 2003-04 as against an earlier guidance of 40-45 per cent.
Sales growth guidance has also been increased from 35-40 per cent to 55-60 per cent.
The basic earning per share stood at Rs 4.53 during the quarter compared to Rs 1.32 in the same period lat year.
The HSS President and Managing Director, Mr Arun Kumar, said that the strong first-quarter performance was the result of a new strategy of expanding the legacy business, developing stronger relationships with customers, strong domain expertise and diversification.
"We are even more optimistic about the future and have revised our financial guidance upwards for the rest of the fiscal year," he added.
During the quarter, HSS added 14 new customers for products and services and 78 employees.
It also added Rs 5.6 crore to its cash and bank balances while the debtor turnover ratio improved by 19 days.
Higher volumes from existing customers and better utilisation led to a 34 per cent growth in professional services during the quarter.
However, product business declined by 13 per cent sequentially.
The company's BPO business grew by 139 per cent during the period under review.
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