HSS records 13 % Sequential Growth QoQ in Net Income

For the fourth quarter of the financial year 2002-2003, Hughes Software Systems (HSS) reported a 13 percent sequential QoQ growth in total income. The total income increased from Rs 61.2 crore for the quarter ending March 31, 2002 to Rs 66.5 crore for the corresponding period this year. The sales in the fourth quarter registered an increase on 12 percent sequentially QoQ growing to Rs 63.7 crore in Q4 of 2002-03 as compared to Rs 58 crore in the corresponding period last year. Profit after tax also registered a 21 percent sequential QoQ growth, from Rs 12.7 crore in Q4 of last financial year to Rs 13.8 crore for the corresponding period for 2002-03. The earnings per share also registered 21 percent sequential QoQ growth.

As compared to the encouraging results of Q4 the FY2003 results showed a decline in total income by eight percent to Rs 229.3 crore in the current financial year as compared to Rs 248.1 crore in the last financial year (2001-02). The net sales also declined by six percent YoY to Rs 220.4 crore this year as compared to Rs 234.9 crore in the last financial year. Profit after tax also showed a decline of 27 percent YoY from Rs 52.2 crore to Rs 37.9 crore. The company is expecting sales growth of 35 percent - 40 percent in FY 2003-04 and attributes the business it would get from Lucent as one of the factors of having such an optimistic outlook. It also expects PAT to grow 40 percent - 50 percent in the next financial year.

Speaking on the company's performance, Arun Kumar, President and MD, HSS, said "We have showed three consecutive quarters of QoQ growth and would continue to work toward scalability and predictability. Our visibility as of now is very good and we are very excited about our positioning in the next quarter."

He added that the worst for the Telecom sector is over apart from some macro challenges. Industry wise everyone is looking towards cutting cost and increasing bottomline as the margins are shrinking with time. 

Commenting on the future prospects, he said that the company is looking at scaling its operations based on large account acquisition and enhancing the size of its existing relationships. The Lucent win has given the company a ready customer base in the form of Lucent customers. Impact of the Lucent deal would be felt in this current quarter. I think that the Lucent acquisition would be one of the top five factors for our good performance next year.

(CNS)