Paid-up equity capital increased by 552 per cent to Rs 20.88 crore (Rs 3.20 crore), on account of fresh issue of shares.

Total expenditure was at Rs 61.46 crore (Rs 8.07 crore). Reserves grew to Rs 72.32 crore (Rs 1.58 crore).

Depreciation accounted for Rs 0.45 crore (Rs 0.01 crore). Earnings per share for the quarter stood at Rs 8.07 (Rs 2.42). For the six months ended June 2000, the company has posted a sales of Rs 141 crore and a net profit of Rs 28.72 crore.

Company president and chief executive officer, Nandu Thondavadi, said at a press conference in Chennai on Monday that the company would finish the year with a sales of Rs 300 crore and net profit of Rs 60 crore.

The company is presently in talks with investors for private placement of its shares to raise $30 million. It has recently acquired Ponderosa technologies in the US through its wholly-owned subsidiary in Mauritius. The subsidiary has been set up with an investment of $4.25 million of which $4 million has been invested in the US acquisition. Thondavadi said that the company was in the process of acquiring two company in the US, one situated in the West coast and the other in New York with a combined turnover of $73 million. It also plans to acquire three companies in India during the next year. An acquisition in Europe is also on the cards, in order to gain a foothold in the European market, he added.

The company has acquired Symatec, a Delhi-based management consultancy firm, which is expected to strengthen its management consulting services. The areas of operation of the company include software development and consulting, e-business services, software products such as ERP and management consulting. It plans to focus on telecom software to tap the opportunity in the convergence sector.

Mascon has tied up with two large customers in the area. It plans a revenue of $1.6 million by this year end and $12 million and $75 million in the second and third years.

The company has entered into an arrangement with the Insurance Regulatory Authority, to provide software solutions for them. It plans to tap the area of bank automation. The company has entered into an arrangement with Lakshmi Vilas Bank Ltd for branch automation and is in discussion with three other banks.

Mascon currently employs 800 professionals and plans to set up a software technology park near Chennai with an investment of Rs 60 crore. The facility would be able to accommodate 2,000 developers and is expected to be completed by mid-2002.