Financial Daily from THE HINDU group of publications
Thursday, Oct 31, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Info-Tech - Software
Corporate Results - Software


Albion Orion goodwill drags SSI bottomline

Our Bureau

CHENNAI, Oct. 30

THE net profit of SSI Ltd has reduced by more than half to Rs 1.13 crore on total revenues of Rs 59.5 crore for the first quarter ended September 30, 2002.

This is compared to a net profit of Rs 2.78 crore on total revenues of Rs 82.87 crore during the same period last year. The net profit in the previous quarter ended June 30, 2002 was Rs 1.18 crore on revenues of Rs 58.3 crore.

On a consolidated basis, including subsidiaries, the company reported an increased net loss of Rs 10.47 crore on total revenues of Rs 91.37 crore for the September quarter compared to a net loss of Rs 8.35 crore on revenues of Rs 113.73 crore for the same period last year.

The Chairman and CEO, Mr Kalpathi S. Suresh, told reporters here that the Rs 10-crore goodwill every quarter (from the acquisition of the US-based Albion Orion Inc) was affecting bottomline. The company had amortised goodwill of about Rs 50 crore in the last six quarters, and Rs 160 crore was still left, he said. "We are still debating internally whether to amortise the entire goodwill at one go," he added.

During the September quarter of 2002, revenues from education and training dropped by more than half to Rs 21.13 crore (Rs 48.5 crore). On the other hand, revenues from software services increased marginally to Rs 38.4 crore (Rs 34.3 crore). On billing rates, Mr Suresh said, while the rates are constantly under pressure, overall, the numbers remain the same compared to last quarter.

The company's onsite billing rates in business consulting was about $250 per person per hour. In partnership with the PricewaterhouseCoopers, SSI (through its Chicago office) was doing a consulting project (in enterprise application integration) for the US-based Baxter at a rate of $250, he added.

On its own, SSI was doing a Manugistics (supply chain) project at $190 (net rate) for a US client, he added. The current order book was at $43.5 million and in the last quarter the company got an order of $8 million, he said.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Kerala to unveil BPO policy soon


Rajyotsava Award for Nilekani
Govt queers Samsung tele equipment plan
Tata Teleservices NCD gets `P1+(SO)'
BSNL puts off CellOne launch in9 AP cities
BSNL mobile service comes to Mangalore
SC adjourns WLL case to Nov 20
Hutch, it's here!
BEL, PicoPeta to make simputers
Naidu calls for push to hardware sector
Mentorix bags $20-m contract from Pearson
MindTree upbeat on West Asian market
`Corporatisation of STPI unlikely in near future'
`IT cos need skills to retain customers'
Albion Orion goodwill drags SSI bottomline
Singapore Comp eyeing stake in Indian cos
Wipro unveils Rational centre
DSQ net loss at Rs 22 cr
Singapore touted as recovery centre
Andhra Bank plans e-Seva services
The other end of IT spectrum
Centre to modify VC funding strategy
Phaneesh sets Silicon City abuzz
Sony launches DVD writers
New upgrade tool for SAP
GETIT's tele-information service


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line