SSI up 2% on profits jump, prospects

CHENNAI: Shares of Indian software services and training firm SSI Ltd were up

over 2.0 per cent on Friday morning, the second straight day of gains for the

share driven by a huge jump in profits for 1999-2000 (July-June).

Analysts said the gains were linked to the good earnings growth reported by

the company, as well as the firm's aggressive growth plans for the current year.

On Wednesday, the firm reported a 215 per cent jump in earnings in 1999-2000,

with profits rising to Rs 569.33 million, from Rs 180.70 million in the previous

year.

At 12:37 a.m. (0707 GMT), the share had gained Rs 59.70, to Rs 2,670, off an

intra-day high of Rs 2,730. Friday's gains followed a 6.33 per cent jump on

Thursday. The benchmark index of the Bombay exchange was down 0.17 per cent at

4,451.52 points.

"It is the euphoria generated by the good results they have reported and

the aggressive growth targets they have set for this year that has resulted in

the optimism in the scrip," said Kothari Pioneer Asset Management analyst S

Chellappa.

He said the share was however likely to start easing at levels of around Rs

3,000. "The firm appears quite optimistic with a revenue projection of $40

million only from the software business, which will take quite a lot of doing as

it would mean increasing their manpower from the present 500 or so numbers to

about 2,500," he added.

The firm's shares are up over 80 per cent from its calendar 2000 low of 1,476

hit on May 29, but are still about 63 per cent down from their peak of Rs 7,200

hit on March 6.

(C) Reuters Limited 2000.