Silverline up ahead of results

MUMBAI: Shares of Indian software services firm Silverline Technologies Ltd.

were up 2.7 per cent in Monday morning deals ahead of its first quarter results

but analysts said the earnings were unlikely to be as spectacular as some others

in the sector.

At 12:40 p.m. (0710 GMT), the stock was up Rs 11.75 at Rs 449, though most of

the software sector was weak. The overall market was also subdued with the main

Bombay exchange index down nearly 1.0 per cent. Silverline's volumes were over

2.0 million shares, the fourth biggest on the exchange.

Analysts said Silverline was a favorite with traders and the rise could be

explained as a pre-results rally.

The stock is up 38 per cent from its calendar 2000 low of Rs 326.35 hit on

May 15 but is still down 69 per cent from its peak of 1,395 touched on February

22.

"I expect profit growth of about 60-65 per cent, in line with the

average industry growth," said Dil Vikas Finance Ltd. analyst Sanjay

Puthran.

Software leader Infosys Technologies and the heavily traded Satyam Computer

Services last week announced net profit growth of 100 per cent and 95 per cent,

respectively, for the quarter.

Some analysts said Silverline's first quarter would not be extraordinary

since it has not announced many new alliances or clients.

Silverline in June listed its American Depositary Shares (ADS) on the New

York Stock Exchange, with each ADS being equal to two shares.

The ADS' ended Friday up $0/03 at $21/13.

(C) Reuters Limited 2000.