DSQ Software Net Profit up 24%

DSQ Software has reported a net profit of Rs. 11 crore for

the first quarter ended June 30, 1999 as against Rs. 8.84 recorded last year for the same

period, marking a growth of 24 per cent. The gross profit before depreciation and interest

charges has risen by 54 per cent to Rs. 21.74 crore from Rs.14.13 crore. Gross profit

after interest but before depreciation and taxation touched Rs. 18.32 crore as against

Rs.

11.55 crore for the same period last year.

Sales for the period has gone up by 47 per cent to Rs. 62

crore from Rs. 42.18 crore in the same period last year. Interest charges were higher at

Rs. 3.42 crore from Rs. 2.58 crore in the same period last year. Depreciation was higher

at Rs. 7.32 crore from Rs. 2.71 crore in the same period last year, thanks to the

accelerated depreciation policy adopted by the management. The paid up equity share

capital has remained constant at Rs. 20.25 crore.

Company has recently completed its restructuring along the

lines of technology and business and on the marketing front, DSQ has decided to focus on

end customer sales rather than depend on more channel partners. DSQ's target in the next

6-9 months is to obtain 90 per cent revenue from top 30 customers and it also plans to add

ten new large customers every year. Nine of its customers presently, fall in the category

of over $5 million billing per annum and these nine customers will give $ 50 million

billing in the next one year.

DSQ also expects revenue of about $10 million in the next

18 months from its West Asian and Singapore customers, who are into oil, gas and

electricity companies. From large accounts and government accounts only, the company has

clear visibility of $80 million billing in the next 12 months. It has created Line of

Technology Groups to face the challenges on Technology Advancement in the areas of

ERP,

Mainframe, Midrange, ECC and Client/Server Architecture, which is also responsible for

creating expertise in the technological front apart from execution and delivery projects.