Kaul: Upbeat

New Delhi, Jan. 8: Hughes Software Systems is all set to register a Rs 10-crore turnover in financial year 2003-04 and expects to record a growth of 106-114 per cent on a year-on-year basis.

The company registered a 110 per cent jump in its net profit at Rs 23.9 crore over corresponding quarter last year. Sales also grew by 69 per cent at Rs 96.5 crore over corresponding quarter last year while its total income of also improved by 67 per cent at Rs 98.8 crore over corresponding quarter last year.

The company added 17 new telecom customers during the quarter. Its basic earnings per share of Rs 7.10 represents a 109 per cent growth over corresponding quarter last year.

“We expect a sales of Rs 356 to Rs 361 crore representing a growth of 62-64 per cent on a year-on-year basis and net profit between 106-114 per cent on a year-on-year basis,” said Arun Kumar, president and managing director, Hughes Software System.

“This validates our strategy of doing selective business on a risk/reward basis. Progress made by HSS on new initiatives, particularly the telecom business, was most encouraging. The growth momentum is strong as we move to cross the magical number of $100-million in turnover in financial year 2004-05 while striving to preserve our baseline profitability,” said Kumar.

He said the company’s profitability moved up sharply from the baseline of 21-24 per cent for the quarter on the heels of royalties received.

The company added Rs 9.2 crore to its cash and bank balances, further improved its debtor turnover ratio to 70 days and continued to carry a healthy order backlog. The EBIDTA and net profit margins improved by 14.3 per cent and 23.5 per cent respectively from last quarter levels on account of better absorption of overheads over higher volumes and royalties.

During the quarter, HSS added 17 new customers for products and services.

Chairman Pradman Kaul said: “HSS is generating strong business momentum on the back of its strategy of prudent diversification and penetration in the telecom domain.”