Thursday, January 8, 2004
Hughes Software advanced further during afternoon trades
after the company announced impressive results for the third
quarter ended 31 December 2003.
At 13:34 IST, the Hughes Software stock was trading 6.67%
higher at Rs 589 on the BSE, where up to 1.84 lakh shares
of the software company changed hands so far. The stock has
moved in the Rs 553.15-593 range until now.
Hughes Software unveiled its third quarter results during
afternoon trades today. The company reported a massive 110%
rise in net profit at Rs 23.9 crore (Rs 11.4 crore). Total
income increased 67.45% to Rs 98.8 crore (Rs 59 crore).
On quarter-on-quarter basis, net profit increased 41.4% from
Rs 16.9 crore in SQ-2003. On the current equity share capital
of Rs 16.83 crore, earnings per share (EPS) on an annualised
basis works out to Rs 56.8.
Incidentally, the 110% rise in net profit surpassed the estimates
of a poll conducted by capitalmarket.com. The poll had estimated
Hughes Software's net profit to be in the Rs 17.10 crore-Rs
19.40 crore range, a growth of 50% and 70%.
In fact, the results also surpassed Hughes Software's own
guidance. The company had estimated profits to grow 60-65%
and sales to increase by around 55-60%.
Hughes Software has now revised upwards its guidance for
FY-2004. The company has increased its profit guidance to
80%, from 60-70%. It expects sales to grow in the range of
55-60%.
Hughes Software is engaged in the development of packaged
software. It provides share consultancy services and other
ancillary products and services to the telecommunications
industry.
Hughes Software's continued focus on the telecom software
solutions domain has begun to reap dividends. Incidentally,
the company derives more than 53% of its revenues from the
wireless telecom segment.
In order to de-risk its business and create added 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 also diversifying its revenue streams and eyeing a foray
into the banking, financial services, insurance (BFSI) arena.
Incidentally, the board of Hughes Software today approved
a proposal to merge Tenet Technologies with the company.
Last updated :
March 26, 2004
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