Market leader Infosys has seen a 105 per cent jump in net profit to Rs 28.4 crore and a 126 per cent growth in net profit to Rs 52.07 crore for the first half ended September 1998. Revenue, too, has more than double in the first six months to Rs 218.86 crore.

Backed by offshore software projects and Y2K solutions, Satyam Computers has reported a 123 per cent (Q1 net up 113 per cent) jump for the first six months ended September 1998. Turnover, too, has zoomed by 155 per cent to Rs 171 crore.

However, the exceptional growth in earnings has not been accepted well by the market. Satyam Computers took a severe beating and lost substantial value after the announcement of its first half results. The stock tumbled to Rs 50 onthe National Stock Exchange, while on BSE, it lost Rs 34 to Rs 594. The total traded volume was around 41.88 lakh shares.

Infosys and BFL Software were down marginally after their results were announced. Infosys closed at Rs 2308, down from the previous close of Rs 2323 on BSE and BFL Software lost Rs 6 to Rs 549.

Marketmen feel the fall in scrip values was expected as these stocks had been rising on the bourses ahead of their results. Satyam Computer had risen from Rs 485 to a high of Rs 597. Similarly, Sierra Optima had risen from Rs 168 to Rs 225 in less than 12 trading sessions. Even Infotech Entreprises, which reported a 100 per cent increase in net profit, had shot up by Rs 80 to Rs 196 in just seven trading sessions.

The next couple of weeks will see a host of software companies unwinding their financial performances. CMC Limited will take up its results on October 23, Tata Infotech on October 23, KLG Systels on October 17, Onward Technologies on October 17 and RS Software on October 13.

Therecent software export figures shows a healthy trend. Software exports have grown by 68 per cent during the first-quarter of 1998-99 and is well within the target of Rs 11,000 crore against Rs 6530 crore last year. With exports accounting for a substantial chunk of the earnings of software companies, this bodes well for these companies. The improved first-half results have been on the back of a healthy first quarter performance.

NIIT likely to report Rs 115 crore net

NIIT Limited, which will announce its results on October 14, is expected to announce a net profit of around Rs 115 crore on a turnover growth of around 45 per cent for the 12 months period ended September 1998. The earning are expected to be substantially higher than the last years figure of Rs 67.89 crore. Other software companies, too, are likely to post a good earnings growth of 80-100 per cent in their bottomlines for the first-half ended September 1998.