Friday, August 30, 2002
Relatively high volumes matched the rise in the stock as
over 32.32 lakh shares were traded on BSE so far. In the 19
sessions to today, the scrip charged up 38.6% from a 52-week
low of Rs 125.30 .
As per market talk, a huge block deal of around 10-12 lakh
shares had taken place in early afternoon trades at a price
of around 155-160 per share. It is believed that Unit Trust
of India (UTI) was the selling party in the block deal. However
the buyer is not known.
UTI is believed to be selling as it is facing redemption
pressure on some of its monthly income schemes. But why any
party might want to make a huge block purchase in Satyam Computer
is yet a matter of conjecture as analysts feel, fundamentally,
the company is in the throes of declining earnings due to
its huge dependence on the woebegone telecom sector.
For Q1 ended 30 June 2002, Hughes Software registered a massive
76.5% fall in net profit to Rs 4.4 crore compared to Rs 18.7
crore in the corresponding period last year. Net sales decreased
25.3% to Rs 47.4 crore from Rs 63.4 crore in JQ 2001. Earlier,
Hughes Software said that it expected sales to grow 15% for
FY 2002-03 with a profit after tax margin of approximately
25% of total income.
Hughes Software added 10 new customers for its telecom products
and three new customers for its software services in the quarter
ended 30 June 2002. It also reported having an order backlog
worth $20 million.
Hughes Software is a specialist in convergent network software,
and a leader in providing GPRS, UMTS as well as VoP software
to original equipment manufacturers (OEMs).
Last year, Hughes Software underwent change in parentage,
after General Motors entered into an agreement to sell Hughes
Electronics Corporation to EchoStar Communications Corp (HEC)
for $25.8 billion in cash and shares. Hughes Software derives
substantial revenues from HEC, which may continue.
In order to further de-risk its business and create more
new opportunities, Hughes Software has decided to enter into
the business process outsourcing (BPO) segment. This will
be started as an independent operation.
Hughes Software is a subsidiary of Hughes Network Systems
(HNS), a unit of Hughes Electronics Corporation (HEC). HNS
is a networking company, dedicated to providing products and
services to build and operate digital communication networks
worldwide. HNS is the world leader in VSAT-based networks.
HEC is a world leader in the design, manufacture and marketing
of advanced electronic systems. It was a wholly-owned subsidiary
of General Motors Corporation, USA.
HNS India Inc is the principal shareholder in HSSL. As on
30 June 2002, the promoters' holding in Hughes Software was
55.57%, while institutions and the public held 15.9% and 10.4%,
respectively.
Last updated : February 2, 2004
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