Mascot eyes 60 % profit rise

BANGALORE: Indian software services firm Mascot Systems Ltd. on Tuesday

forecast its profit will surge 60 per cent to Rs 750 million ($16 million) in

the current year to March.

The company, a subsidiary of US-based software firm iGATE Capital Corp, said

revenue is expected to increase 40 per cent to Rs 5.0 billion. "The company

expects that the growth in financial year (2001/02) will include an increasing

offshore revenue contribution, leading to expansion of profitability margins and

faster expansion in earnings," Mascot said in a statement.

Offshore services involve software work done in India for overseas customers.

Mascot said about 600 of its 1,662 staff is based at its three Indian offshore

development centers. Mascot also said managing director V Chandrasekaran had

quit to pursue other professional and personal interests after about 18 months

in the position.

It said chief operating officer Shekar Sivasubramanian had been appointed

acting managing director, and the company expects to name a permanent

replacement in three months. Mascot's stock ended 7.5 per cent higher at Rs

121.75 on Tuesday after it released its earnings results for the past year and

earnings forecast for the current year. The Bombay Stock Exchange's main

30-share index rose one per cent.

Earnings results

Mascot reported a profit of Rs 466.7 million for past year to March, before an
extraordinary charge of Rs 91.6 million. It said the results were not comparable

to the previous year as it began operating in its present form from January

2000.

"Prior to that period, in 1999 the company underwent a restructuring

program and transformed itself into an Indian infotech services company,"

the statement said.

The United States accounted for 65.5 per cent of Mascot's revenue in 2000/01,

followed by Europe at 12.0 per cent. Asia-Pacific contributed 22.5 per cent.

Mascot said it had set up finance, banking and insurance units to boost business

opportunities within the financial sector.

(C) Reuters Limited 2001.