Financial Daily from THE HINDU group of publications
Wednesday, Oct 22, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 22, 2003 |
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Info-Tech
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Financial Performance Corporate Results - Software Digital Q2 net up 49 pc — Plans rapid ramp-up of digital contact centre biz Our Bureau
Bangalore , Oct. 21 DIGITAL Globalsoft Ltd, the subsidiary of Hewlett Packard, has reported a 49.2-per cent rise in net profit at Rs 31.9 crore for the second quarter ended September 30, 2003 over the corresponding period the previous year. Revenues grew by 53.1 per cent to Rs 149.88 crore during the quarter as against Rs 97.9 crore reported during the same period last year. On a sequential basis, net profit grew by six per cent while revenues increased by seven per cent. Revenues from software services business during the second quarter increased by 38 per cent to Rs 128.8 crore (Rs 93.6 crore) and from digital contact centre (DCC) business showed rapid growth at Rs 15.9 crore compared to Rs 30 lakh in the second quarter of 2003 and Rs 8 crore in the first quarter of 2003-04. DCC business continues to be in a rapid ramp-up and investment phase and is fast gaining critical operating mass. It is likely to report a cash break-even in the near term. The company has invested Rs 21.8 crore for expansion of infrastructure and hired 1,203 people, thereby increasing the overall headcount to 4,440. About 906 people were recruited for the DCC business, while 260 engineers were hired for its software services business. "Our state of mind is to invest, expand, hire and grow. We invested Rs 21.8 crore in capex last quarter, commissioned new infrastructure to our campus, added over 1,200 people and continued to deliver progress in our financial performance," said Mr Som Mittal, President and CEO, Digital. "Given the returning stability in the global IT environment, increased client transaction and prospective business pipeline, we see no reason to alter our present frame of mind. On an overall basis, I continue to maintain an optimistic outlook for the future," he added. "Given HP's leadership position in the IT sector and our abilities, skills, expertise and infrastructure, we believe that we are in a good position to realise our business goals as indicated earlier," said Mr Peter Mercury, Chairman. Contribution from HP business increased by 62 per cent to cross Rs 112 crore up from Rs 69 crore. Revenues from HP-referred external business stood at Rs 5.4 crore. Non-HP revenues from services business showed encouraging growth and accounted for 26 per cent of revenues at Rs 28.2 crore.
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