New Delhi, Jan. 1: Silverline Technologies suffered a net loss of Rs 6.47 crore during July-September 2002, against a profit of Rs 13.88 crore a year back. The share immediately skid to an intra-day low of Rs 21.90 after the results were announced, a 3 per cent fall from its intra day high of Rs 23.05. The scrip closed at Rs 22.40, down 25 paise or 1.1 per cent from yesterday’s close of Rs 22.65. The counter saw volumes of 12,67,571 shares. The Silverline ADR dived almost 10 per cent in the US market to close at 86 cents on Tuesday.
Pegged as the sunrise company with a bright future after Wipro, Infosys and other stars of the software sector, Silverline Technologies seems to be the first casualty of a year in which the software industry expects to post a 30 per cent growth.
“Silverline had made huge investments in electronic customer relations management (e-CRM) programmes and wanted to simultaneously go in for the BPO operations. But the returns from the e-CRM were delayed as its focus was towards the lower-end segment like retail companies,” a senior analyst at the National Association of Software and Services Companies (Nasscom) said.
“The company had also hoped to secure major revenues from a few new offshore projects, but those did not take off, resulting in big losses,” the analyst added.
Silverline Technologies (formerly Silverline Industries) formed in 1992, earns a significant portion of its revenues from application development, integration, maintenance and staff augmentation (body shopping).
Around 77 per cent of Silverline’s consolidated (Indian entity, SeraNova and other subsidiaries) revenues came from projects and solutions in the second quarter of 2002-03. The remaining 23 per cent came from body shopping. The Indian entity Silverline Ltd contributes to about 25 per cent of the consolidated entity’s revenues. The financial analysis is only for the Indian entity as reported to the bourses in the country.
Silverline focuses primarily on Global 2000 clients in key industry sectors, such as automotive/discrete manufacturing, financial services, healthcare/insurance, technology and telecommunications. The company also offers software for mobile and wireless applications, e-payments and enterprise information portals, as well as in business processes such as customer relationship management, eProcurement and online marketplaces, channel management and employee enablement.