SSI Posts Q1 Net Of Rs 1.13 Crore

Chennai: | Updated: Oct 31 2002, 05:30am hrs
SSI Ltd has reported a net profit of Rs 1.13 crore for the first quarter ended September 2002, as against Rs 2.78 crore during the corresponding period last year. Revenues for the period declined by 28 per cent to Rs 59.5 crore (Rs 82.8 crore).

We are seeing stabilisation of both training and software services revenues on a quarter-on-quarter basis. Going forward, we expect revenue and profitability to gradually rise through the rest of the year, said SSI Ltd chairman and chief executive officer Kalpathi S Suresh.

The company is also looking at acquisitions in the software services space. We are in talks with six companies with revenues ranging from $6 million to $60 million. We are also looking at acquiring customers from other software service firms, Mr Suresh added. He declined to specify a time frame for the acquisitions.

SSI expects to complete the building of the offshore develoment centre (ODC) in Chennai this year.We will offer our ODC facility to those interested in setting up shop in India. SSI will be the single point of contact and it will be on transfer pricing mechanism, the chief executive explained.

On the software education front, the company has had informal talks with other leading firms to deal with the overcapacity in the industry. However, no formal agreement has been inked.

SSI is reviewing its policy of amortising goodwill to the tune of Rs 10 crore each quarter. About Rs 160 crore of goodwill is left from acquisition of AlbionOrion Corporation, US.