Saturday, October 12, 2002
New Delhi, October 11: Telecom software firm Hughes Software
Systems (HSS) has reported a 32 per cent growth in its net
profits at Rs 8.3 crore for the second quarter ended September
2002 from Rs 6.3 crore in the corresponding quarter last fiscal.
The net sales of the company, however, slipped marginally
to Rs 52.1 crore in the second quarter as against Rs 53.6
crore of the same period last year.
The company has attributed the jump in net profit to the
cost saving measures undertaken by the company during the
quarter. The total expenditure made by the company during
the quarter has come down to Rs 42 crore from 44.3 crore of
last year. The company has also reduced its staff cost from
Rs 26.2 crore in the second quarter last year to Rs 23.9 crore
for the same period this year.
We have focussed on increasing productivity and did not replace
the people who left us as a process of natural attrition,
HSS managing director Arun Kumar said in a media briefing
on Friday. HSS has lost around 65 employees during the quarter.
Mr Kumar has also announced the companys plan to enter into
the banking and financial software services sector. We are
in the process of building a team for BFSI (banks, financial
services and insurance) business, which will be a division
of HSS, he said.
The company was also looking for acquisitions in this space
for ready access to the domain knowledge and client portfolio,
he said. Mr Kumar said the companys strategy of diversifying
into new verticals would show the desired results in medium
to long term. HSS has already announced its plan
to enter into IT enabled services sector.
Talking about the companys future outlook, Mr Kumar indicated
that the company was expected to record around 10 per cent
sequential (quarter-on- quarter) growth in revenue next quarter
ending December 2002. He, however, did not comment on the
net profit projections.
We have already implemented several measures to diversify
revenue and have cost structure more commensurate with revenue.
Our strategy to grow existing relationship in original equipment
manufacturers (OEM) and telecom service provider (TSP segment
is showing progress he said.
The broadened offering will help the company derisk its business
and reduce dependence on telecom verticals, said Mr Kumar.
Last updated : February 2, 2004
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