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Hughes says it will maintain topline growth

Leading Indian communication software provider Hughes Software Systems Ltd said on Thursday sales growth remains robust but net profit growth could slow, though not by much, this year.

"We expect to maintain a compounded annual growth rate of 61 per cent in terms of topline (for this year)," chief operating officer Manoranjan Mohapatra said in a news conference to discuss its results for the past year and outlook for this year.

The company, the Indian affiliate of Hughes Electronic Corp, has been growing at that pace since its establishment in 1992. It has chalked up a blistering 88-89 per cent compounded average growth rate since 1992; net sales have grown at a compound average rate of 61 per cent.

But on Wednesday, the company indicated profit growth could ease somewhat in the current year to March 2002.

"Profitability will be better than the 61 per cent revenue growth," Mohopatra said. But he did not say whether the company would maintain its nearly decade-long profit growth rate.

On Wednesday, Indian infotech sector leader Infosys Technologies Ltd forecast its revenue growth will slow by two-thirds this year, causing its share price and those of many other Indian tech companies to fall sharply.

Hughes Software's shares swung wildly in Thursday trading after the company posted better-than-expected fourth-quarter and full-year results just before the market opened.

Net profit rose 66.8 per cent to Rs 629 million for the year to March. Analysts had expected a 54 to 57 per cent rise.

Excluding an extraordinary item of Rs 62 million the previous year, net profit shot up by 100 per cent.

Hughes' net sales soared 85 per cent to Rs 1.985 billion; analysts forecast an 83 per cent increase.

The company's shares rallied 15.67 per cent to Rs 559.50 in mid-morning trade on the Bombay exchange, after falling nearly 15.21 per cent in early trading.

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