The Hindu Business Line : Hughes Soft clocks 110 pc rise in Q3 net

HUGHES Software Systems (HSS), which develops software for telecom companies, today said that its net profit for the third quarter rose by 110 per cent as it had bagged more orders.

Net profit grew to Rs 23.9 crore from Rs 11.4 crore in the same quarter a year back. Sales stood at Rs 96.5 crore over Rs 57.1 crore earlier, company officials said.

"All aspects of the business are doing well. The services part has seen significant growth, while our products and business from Hughes Network Systems (HNS) is stable," said Mr Arun Kumar, President and Managing Director, HSS.

He added that the company expects to grow at 62-64 per cent year-on-year to Rs 356-361 crore in the current fiscal.

Net profit would be Rs 78-81 crore, growing at 106-114 per cent year-on-year.

In 2004-05, the group expects to cross $100 million in revenues.

Basic earning per share (EPS) during the quarter was Rs 7.10 while the diluted EPS was Rs 6.92 compared to Rs 3.39 in the corresponding previous quarter.

Net profit for the first three quarters was Rs 56.1 crore on a sales of Rs 258 crore.

During the third quarter, telecom contributed Rs 92.7 crore while revenues from business process outsourcing (BPO) operations accounted for Rs 3.8 crore.

Services to HNS contributed 22 per cent, down from 28 per cent a year back, as services to other clients increased to 58 per cent from 46 per cent.

Product revenues declined to 16 per cent from 25 per cent.

HSS added 17 new clients in the quarter, taking the total number of active clients to 110.

The company also added 202 employees and plans to hire another 1,000 over the next one year.

The company currently has about 2,300 employees.

Mr Kumar said that HSS is on the lookout for more acquisitions in the telecom technology area as it wants to emerge as a provider of a complete spectrum of services.

The company had earlier bought Tenet Technologies.

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