BANGALORE: Indian software firm Silverline Technologies Ltd. on Wednesday
reported 87.3 per cent growth in profits for the October-December quarter from a
year earlier.
Net profit rose to Rs 350.29 million ($7.54 million) or Rs 4.79 per share,
from Rs 187.05 million or Rs 2.90 per share a year earlier.
Net sales rose 46 per cent to Rs 749.15 million from Rs 511.58 million in the
year-earlier quarter.
"While the bottomline has done well, the topline is not in line with
expectations," Jayesh Parekh, analyst at SMIFS Securities, told Reuters.
"I had expected the topline to grow 80-90 per cent."
Other analysts have said that they had a negative outlook for the share after
its acquisition of US-based SeraNova Inc which specializes in consulting
services for Internet businesses, a sector out of favor with the markets.
Silverline's shares ended 2.2 per cent higher at Rs 256.75 ahead of the
results, while the 30-stock Bombay exchange index closed 1.04 per cent lower.
The share has fallen 27.8 per cent in the last six months and 20 per cent
since it announced the acquisition of Seranova Inc.
Higher offshore revenue
Silverline said the October-December quarter witnessed an increase in offshore
revenues to 36 per cent of total revenue from 25 per cent in the year-ago
quarter.
Offshore revenue refers to income from software developed in low-cost India,
away from the location of customers who are mostly based in lucrative Western
markets.
"We have made aggressive infrastructure investments during the quarter
that are expected to contribute to higher profitability in subsequent
periods," chief executive Shankar Iyer said in a statement.
Silverline said that the acquisition of Hong Kong-based IT consulting firm
Sky Capital International had resulted in widening its customer base.
Silverline acquired Sky Capital in a $22 million all-cash deal last October.
(C) Reuters Limited 2001.