Date:14/10/2004 URL: http://www.thehindubusinessline.com/2004/10/14/stories/2004101402030700.htm

Back Hughes Soft Q2 net up 52 pc

Our Bureau

Mr Arun Kumar, President & MD, Hughes Software.

New Delhi , Oct. 13

HUGHES Software Systems (HSS) has posted a 52-per cent increase in net profit for the second quarter ended September 2004 at Rs 25.8 crore on standalone basis, with the performance largely volume-driven.

With major growth coming from services business, HSS sales during July-September stood at Rs 116.6 crore, a growth of 37 per cent compared with Rs 85 crore in the same period previous year.

For half-year ended September 2004, its net profit rose to Rs 50.6 crore (Rs 32.3 crore).

On consolidated basis, HSS, along with its subsidiary Tenet Technologies, notched a profit after tax (PAT) of Rs 25.6 crore, a 51 per cent growth. Its sales stood at Rs 117.8 crore , growing 39 per cent.

As per its financial guidance on consolidated basis for the next quarter (Q3), the company expects a sales growth of 5-6 per cent on a quarter-on-quarter basis. It has projected a PAT growth of 5-6 per cent."The major growth came on services business. As far as the product business is concerned, although there was volatility, we are pleased with the absolute numbers," Mr Arun Kumar, President and Managing Director of HSS, said at a conference here.

The Telecom Service Provider (TSP) and BPO business remained stable, he added.

HSS' Q2 PAT margin was 21.4, and the company remained cash flow positive and enhanced its order backlog. During the quarter, HSS added 14 new customers for products and services.

Flextronics, the parent company of HSS, will be the `key customer' in the next few years. He said Flextronics has 70.3 per cent stake in HSS after an open offer. ``The shares are currently in an escrow account and will be transferred after the RBI approval is obtained,'' he said.