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VXL, NIIT among major losers

Krishnan Thiagarajan

THE earnings season for the first quarter ended June 30, 2000 was kicked off by frontline companies and second rung stocks on a rousing note. Despite notching an impressive performance for the first quarter ended June 30, 2000, the BL Technology Ind ex suffered a 6.7 per cent dip to close at 4297.9 points. After a sharp rise in stockprices in the run-up to the earnings announcement, the technology stocks reversed course this week on profit booking. Both the industry sub-indices, the BL Computer Hardware and Office Equipment Index and the BL Software Index dipped sharply by 5.4 per cent and 7.9 per cent respectively.

Among the major losers during the week were VXL Instruments which shed 18.8 per cent, Leading Edge (15.12 per cent), NIIT (12.71 per cent), Aftek Infosys (11.9 per cent), DSQ Software (11.31 per cent), Sierra Optima (10.53 per cent) and RS Software (10.2 9 per cent).

The earnings call

Infosys Technologies has recorded a 108.80 per cent rise in income from operations to Rs. 355.53 crores and post-tax earnings growth of 100 per cent to Rs. 121.30 crores for the first quarter ended June 30, 2000 as compared to the same perio d the previous year. The operating profit margins improved by 1.04 percentage to 38.71 per cent.

Satyam Computer Services has registered a 75 per cent rise in turnover to Rs. 277.91 crores and post-tax earnings growth of 95 per cent to Rs. 50.36 crores for the first quarter ended June 30, 2000.

Infotech Enterprises has recorded a 28 per cent growth in turnover to Rs. 10.69 crores and a 35 per cent rise in post tax earnings to Rs. 3.10 crores for the first quarter ended June 30, 2000.

Sonata Software has clocked a 13 per cent rise in total sales and services to Rs. 39.78 crores for the quarter ended June 30, 2000. While the international operations have grown by 46 per cent to Rs. 24.17 crores, the domestic operations dipped by 17 per cent to Rs. 15.61 crores. The post tax earnings grew by 85 per cent to Rs. 7.91 crores.

Mastek has registered a 64 per cent growth in turnover to Rs. 95.46 crores and post tax earnings growth of 242 per cent to Rs. 28.49 crores for the year ended June 30, 2000.

Orient Information Technology has recorded a 130 per cent rise in income from operations to Rs. 17.43 crores and post tax earnings growth of 230 per cent to Rs. 4.78 crores for the first quarter ended June 30, 2000.

Polaris Software has reported a 126 per cent rise in post tax earnings to Rs. 4.89 crores for the quarter ended June 30, 2000. The income from operations has grown by 97 per cent to Rs. 51.94 crores.

The week that was The board of directors of Sonata Software have decided to spin off the Indian operations business comprising of product reselling, IT consulting and business solutions into a wholly-owned subsidiary subject to the approval o f the shareholders. It has also decided to split the existing fully paid-up one equity share of par value of Rs. 10 into 10 fully paid share shares of par value of Rs. 1 each.