Digital GlobalSoft slipped off its day's high of Rs 532, to Rs 510.10, below its previous day's close by 2.06%.
Volumes of 2.9 million Digital shares were recorded on BSE by 14:55 IST. The stock has now lost 17.2% in three sessions from Rs 616 on 7 May 2003. In the previous four sessions, the scrip rose 18% from Rs 521.20 on 30 April 2003.
The movement in the scrip is part of the negative flow in technology stocks. A denial by the company that the parent Hewlett Packard's Indian subsidiary will be merged with Digital GlobalSoft also led to some amount of extra selling. The company also informed that following the global merger between Hewlett Packard and Compaq, the future business and operating structure of Digital Globalsoft is currently under consideration. However, there is still talk in the market that the company is likely to receive huge orders from its parent. Also, the market believes that a huge dividend pay-out by the company is in the offing for FY 2002-03.
For the fourth quarter ended 31 March 2003, a capitalmarket.com poll expects Digital GlobalSoft to register an 8-15% rise in net profit to Rs 28.6-30.5 crore on net revenues of Rs 117.5-127 crore (Rs 1.17 billion), up 25-35.5%.
For the third quarter ended 31 December 2002, Digital GlobalSoft had recorded a 9.7% rise in net profit to Rs 27.01 crore on net sales growth of 26% to Rs 109.98 crore (Rs 1.09 billion). On a sequential basis, the company's performance was more redeeming - a 27% rise in net profit on a 16% increase in sales. It reported strong sequential growth rates in both Hewlett- Pakard and non-HP revenues.
Digital GlobalSoft, previously known as Digital Equipment (India), is a globally focused software development and services company. It has an independent charter for growth and functioning, and enjoys the unique advantage of having Hewlett-Packard Company, one of the leading IT companies in the world as a major investor, customer and supporter.
Earlier, at the global level, there was a merger between Hewlett-Packard, Heloise Merger Corporation and Compaq Computer Corporation. A new entity called Hewlett-Packard Company took shape on 7 May 2002 in the US. Compaq Computer Corporation is the holding company of Compaq Computer Holdings UK, that owns 51% equity stake in Digital GlobalSoft.
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