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Hughes Software's Q1 profit jumps 243 %
Thursday, 17 July 2003, 19:30 IST
NEW DELHI: Hughes Software Systems, India's leading communication software services provider, Wednesday said its profit in the April-June quarter rose 243 percent over corresponding quarter last year.
The company's net profit in the quarter ended June 30, 2003 increased to 
152 million, up from 44 million logged in the corresponding period of fiscal year 2002-03, said Hughes in a press statement issued here.
Hughes' total income in the April-June quarter touched 783 million, registering a growth of 57 percent over the same period in the previous year.
"This is the result of our new strategy of expanding the legacy business, developing stronger relationships with customers, strong domain expertise and diversification," said Arun Kumar, managing director of Hughes Software.
During the April-June quarter, Hughes Software added 14 new customers and 78 employees. The overall professional utilisation rate was 93 percent.
Hughes Software, which counts Lucent, NEC and Nokia among its customers, said its professional services business grew sequentially by 34 percent while product business recorded a 13 percent decline over the previous quarter.
The company's business process outsourcing (BPO) arm showed a significant acceleration during the quarter and recorded sequential growth of 139 percent.
Hughes Software's back office processing arm, Hughes BPO Services, provides customer care services across multiple industry segments such as IT and networking, telecom, automotive, insurance, banking and financial services.
"Hughes Software expects to build on this successful start in the subsequent quarters to meet its goal of generating seven to eight percent of total revenue from this business in the current fiscal year," said the statement.
Buoyed by its impressive performance in the April-June quarter, Hughes Software increased its financial guidance for the quarter ending September 30 as well as for the fiscal year ending March 31, 2004.
For the July-September quarter, the company expects its sales to grow between 55 and 60 percent and profit after tax to increase by 90 to 100 percent over the corresponding period last year.
Hughes Software increased its sales growth guidance for fiscal year 2003-04 from 35-40 percent to 55-60 percent and profit after tax from 40-45 percent to 60-70 percent.
"Although, the overall macro picture in the global telecom industry is still hazy, we have seen continued acceleration in our business and have built a strong backlog," said Kumar.
"Based on this, we are even more optimistic about the future and have revised our financial guidance upwards for the rest of the fiscal year."
Hughes Software serves more than 180 customers worldwide, in the telecom infrastructure, communication service provider, and BPO sectors.
The company has development centres in Gurgaon and Bangalore in India, and Nuremberg in Germany. It has sales and support operations in 10 international locations and employs nearly 2,000 professionals worldwide.
Source: IANS
152 million, up from 44 million logged in the corresponding period of fiscal year 2002-03, said Hughes in a press statement issued here.
Hughes' total income in the April-June quarter touched 783 million, registering a growth of 57 percent over the same period in the previous year.
"This is the result of our new strategy of expanding the legacy business, developing stronger relationships with customers, strong domain expertise and diversification," said Arun Kumar, managing director of Hughes Software.
During the April-June quarter, Hughes Software added 14 new customers and 78 employees. The overall professional utilisation rate was 93 percent.
Hughes Software, which counts Lucent, NEC and Nokia among its customers, said its professional services business grew sequentially by 34 percent while product business recorded a 13 percent decline over the previous quarter.
The company's business process outsourcing (BPO) arm showed a significant acceleration during the quarter and recorded sequential growth of 139 percent.
Hughes Software's back office processing arm, Hughes BPO Services, provides customer care services across multiple industry segments such as IT and networking, telecom, automotive, insurance, banking and financial services.
"Hughes Software expects to build on this successful start in the subsequent quarters to meet its goal of generating seven to eight percent of total revenue from this business in the current fiscal year," said the statement.
Buoyed by its impressive performance in the April-June quarter, Hughes Software increased its financial guidance for the quarter ending September 30 as well as for the fiscal year ending March 31, 2004.
For the July-September quarter, the company expects its sales to grow between 55 and 60 percent and profit after tax to increase by 90 to 100 percent over the corresponding period last year.
Hughes Software increased its sales growth guidance for fiscal year 2003-04 from 35-40 percent to 55-60 percent and profit after tax from 40-45 percent to 60-70 percent.
"Although, the overall macro picture in the global telecom industry is still hazy, we have seen continued acceleration in our business and have built a strong backlog," said Kumar.
"Based on this, we are even more optimistic about the future and have revised our financial guidance upwards for the rest of the fiscal year."
Hughes Software serves more than 180 customers worldwide, in the telecom infrastructure, communication service provider, and BPO sectors.
The company has development centres in Gurgaon and Bangalore in India, and Nuremberg in Germany. It has sales and support operations in 10 international locations and employs nearly 2,000 professionals worldwide.
Source: IANS