BFL Q2 net profit dips by 75%

BANGALORE: Bangalore-based BFL Software showed a drastic dip in its net

profit during the second quarter ending September 30, 1999. The Q2 net profit

went down to Rs 1.82 crore from Rs 7.14 crore in Q2 of 1998-99, a fall of 74.5

per cent. The operating profit also showed a dip of 59.7 per cent, with the

operating profit in Q2 being Rs 3.62 crore, while it was Rs 9 crore in the

corresponding period of the previous fiscal. However, the total income in Q2

went up to Rs 29.51 crore as compared to Rs 24.45 crore in the corresponding

period the previous fiscal.

The company said the change in depreciation policy had resulted in an

additional charge of Rs 53.73 lakh and Rs 1.36 crore for the quarter and the

half-year September 30, 1999, respectively. It also said that the accounting

principles as per the Securities and Exchange Board of India (SEBI) guidelines

are applicable only to Employee Stock Option Plan formulated on or after June

19, 1999, which the company had voluntarily decided to implement it before the

date. As a result, the amortization of deferred compensation had resulted in a

charge of Rs 2.19 crore for the quarter and half-year ended September 30, 1999.

The company's profit after tax for half year ended September 30, 1999, also

halved to Rs 6.03 crore from Rs 12.24 crore during the corresponding period the

previous year.

The company said it had decided to phase out revenues from Y2K during Q2. Its

revenue from non-Y2K had gone up from Rs 34.56 crore for the half-year ending

September 30, 1998, to Rs 55.31 crore for the half year ending September 30,

1999. The company has placed special emphasis on areas like e-commerce, web

enabling of applications and object oriented systems. It also said that the

company has added nine new customers in Q2.