HSS Q1 net up 63%

NEW DELHI: Hughes Software Systems has posted net profit of Rs 24.7 crore for the quarter ended June 30, 2004, depicting a growth of 63 percent, as compared Rs 15.2 crore in the corresponding period last year.

During the same period, the company recorded sales of Rs 108.30 crore which showed an increase of 42 percent from the corresponding period last year. Total income of the company for this quarter stood at Rs 111.5 crore, showing an increase of 42 percent from Rs 78.3 crore in the corresponding quarter last year.

"It was a very good quarter for our company and based on our performance, we are revising our annual guidelines. We are now predicting that our topline is likely to grow between 30 percent to 35 percent, which this figure for bottomline would hover between 28 percent to 37 percent," informed HSS president and MD, Arun Kumar.

The company added 18 new customers under its belt — 13 in the product line and 5 in the services line.

Finding consolidation in terms of acquisition, Flextronics, the DIRECTV Group, Inc. and Hughes Network Systems, Inc. (a wholly-owned subsidiary of DIRECTV) have recently announced that they have signed an agreement whereby, Flextronics will acquire Hughes Network Systems' entire ownership stake of fifty-five percent in HSS.

"Acquisitions play an important role in overall strategy of the company and we strongly feel that we will be more aggressive towards acquisitions in the coming months. We are open to more acquisitions in this part of the world and in different domains as well," added Flextronics design services president, Ash Bhardwaj.