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April 7, 2001
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Money > Business Headlines > Report April 7, 2001 |
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US slowdown to drag Silverline's Q4 netNetScribes/Mahesh Shetty Analysts and industry experts say the US-led technology slowdown is certain to leave its mark on the fourth-quarter profits of software services firm Silverline Technologies. The company's fourth-quarter bottomline is seen rising 60 per cent to Rs 300-320 million from Rs 196 million in the previous corresponding quarter, which is still lower than the third-quarter net profit of Rs 350.20 million. Estimates for the company's topline are just under the Rs 800-million mark. "The US phenomenon looks set to take a chunk out of the company's offshore earnings this time," said a senior analyst at a leading brokerage in Bombay. "Silverline's onsite revenues are going to slowdown," he added. The company is reportedly pursuing a couple of potential business operations in the US and the UK. This is after its risky acquisition of US-based Seranova Inc, which had a substantial quantum of debt on its books at the time it was acquired. Silverline also recently announced that it was tying up with US-based Dharma Systems Inc, which develops integration technology for e-business companies. "Silverline's growth this time is essentially going to come from the company's domestic software services operations. It didn't add any really big international clients in the last quarter," said a senior software analyst at a leading brokerage in Bombay. "Our estimates for bottomline this time are Rs 300 million, while topline is expected to be around Rs 785 million. Silverline's essentially offsite portfolio is now expanding into the European continent and analysts think it will be some time before these areas mature as investments. "For this fourth quarter, Silverline's bottomline could be around Rs 320 million while topline could be around Rs 800 million," said a senior software analyst at a foreign bank in Bombay. This is compared to a topline of Rs 569 million and a bottomline of Rs 196 million in the same quarter last year. For its third quarter ended December 31, 2000, the company posted a net profit of Rs 350.20 million. Most of this came from a continued focus on offshore activities and a decreasing dependence on its top five clients. For the same period, the company recorded net sales of Rs 749.10 million. On Friday, the Silverline scrip closed at Rs 67.70 on the Bombay Stock Exchange, down from its previous close of Rs 68.60. ALSO READ:
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