Hughes Q2 net down 52%

NEW DELHI: Hughes Software Systems Ltd., reported before trading hours on

Thursday that net profit fell 52 per cent in the July-September quarter from a

year ago, substantially more than expected.

Second-quarter net profit fell to Rs 63 million ($1.31 million) or Rs 1.88

per share, from Rs 131 million or Rs 3.7 a share a year ago.

Net sales increased 20.72 per cent to Rs 536 million from 444 million. Staff

costs soared 84.67 per cent to Rs 229 million and other expenditure increased

71.2 per cent to Rs 214 million.

Profit fell short of the three forecasts obtained by Reuters. All three

predicted net profit would rise, with the forecast increase ranging from five to

16 per cent. Net sales were forecast to rise between 12.6 and 36 per cent.

Hughes Software is 56.1 per cent owned by US-based Hughes Electronic Corp, a

unit of General Motors Corp.

Last month Hughes lowered its forecast for net profit growth for the year to

March 2002 to the mid-20 per cent, from an earlier estimate of 60 percent,

because of a slowdown in the telecoms sector.

Hughes' shares ended 3.58 per cent higher at Rs 203.55 at the Bombay Stock

Exchange (BSE) on Wednesday, compared with a 3.66 per cent rise in the benchmark

index .

(C) Reuters Limited 2001.