Hughes Software's fiscal 2003-04 profit rises 104%

Monday, 12 April 2004, 19:30 IST
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NEW DELHI: Hughes Software Systems, India's leading communication software services provider, said Monday its net profit in the fiscal year ended March 31 increased 104 percent on increased outsourcing by overseas clients. The company's net profit in the fiscal year 2003-04 touched 774 million, up from 379 million logged in the previous fiscal year as global telecom infrastructure providers stepped up outsourcing. "We are very happy with the numbers. We have managed to achieve this kind of growth despite a difficult global environment," Arun Kumar, president and managing director of Hughes Software Systems, told a press conference here. "All our businesses made further strides during 2003-04 and have taken Hughes Software to the next level. We plan to build further from this position of strength," he added. Hughes Software's total revenue in the year 2003-04 increased nearly 60 percent to 3.66 billion as against 2.20 billion in the year ended March 31, 2003. The company projected sales growth of between 25 percent and 30 percent in the fiscal year 2004-05 and net profit is expected to show a growth of between 28 and 32 percent over the last year. "The demand flow continues to remain strong as telecom outsourcing is beginning to accelerate. The appreciation of rupee continues to pose a significant challenge for all IT companies on profitability, and HSS is no exception," said Kumar. In the January-March quarter, Hughes Software's net profit grew by 54 percent over the corresponding period in the previous year to 212 million. Total income in the quarterly period also increased from 665 million to 1.03 billion. During the quarter, the company added 11 new customers for products and services, taking its total number of clients to over 250. It also added 150 employees for IT services business during the quarter. Hughes Software has development centres in Gurgaon, on the outskirts of New Delhi, and Bangalore in India and Nuremberg in Germany. The company has sales and support operations in 10 international locations.
Source: IANS