Hughes posts Rs 83 M profits

By siliconindia   |   Friday, 11 October 2002, 19:30 IST
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BANGALORE: Hughes Software Systems Limited (HSS) posted net sales of Rs 521 Million for the second quarter ended September 30. The company announced that Profit After Tax for the quarter was Rs 83 million. For the half-year ended September 30, 2002, HSS recorded net sales of Rs 995 Million. The Profit After Tax for the first half was Rs 127 Million. During the quarter, HSS added 11 new customers for Products and 2 new customers for Services. Named accounts like Acterna, ETRI, Innoace , Intracom, Laboratory for Technical Services and Spirent were added to the customer list. Professional Services, during the quarter, grew sequentially by 17%. Higher volumes contributed towards this sequential growth. HSS saw an expansion of its relationship with NEC & Nokia and bagged repeat orders from JCI, SS8 and Leapstone. Product business, during the quarter, grew sequentially by 7% over the previous quarter. The sequential growth was on account of closure of certain deals whichdeals, which spilled over from the previous quarter. Talking about the company’s near term prospects, Arun Kumar, president and managing director said, "We have already implemented several measures to diversify revenues and have cost structure more commensurate with revenues. Our strategy to aggressively grow existing relationships in the OEM / TSP segments is showing progress. We expect that the HSS strategy of diversifying in to new verticals will show the desired results in the medium to long term. The broadened offerings will help HSS de-risk its business and reduce dependence on the telecom vertical." Commenting on the future, Kumar said, "We expect continued challenges in the telecom vertical , especially for our products business." HSS is progressing as per plan in its foray into the BPO/IT Enabled Services business. The company has signed its first contract with the DirecWay Product Line of Hughes Network Systems for providing technical help desk. There was an all round improvement in the business metrics as compared to the previous quarter. EBIDTA margins improved by 8.2% and PAT margins improved by 6.4%, the company continued to be cash flow positive, and there is a significant improvement in client quality, the company claimed. There was an all round improvement in the business metrics as compared to the previous quarter. EBIDTA Margins and PAT margins showed good improvements, the company continued to be cash flow positive and there was a significant improvement in client quality.