Pentafour Software net profit rises 65

CHENNAI, OCT 14: Pentafour Software amp; Exports Ltd PSEL has posted a 48 per cent increase in its turnover to Rs 317.05 crore for the...

CHENNAI, OCT 14: Pentafour Software amp; Exports Ltd PSEL has posted a 48 per cent increase in its turnover to Rs 317.05 crore for the half-year ended September 1999 as against Rs 214.14-crore secured during the same period of last year.

The net profit of the company has gone up by 65 per cent to Rs 71.16 crore Rs 43.14 crore. Gross profit has increased by 63 per cent to Rs 117.08 crore Rs 71.67 crore. Total expenditure was up at Rs 201.18 crore Rs 126.96 crore while total income was Rs 322.35 crore Rs 216.36 crore. Other income amounted to Rs 5.2 crore Rs 1.22 crore.

Interest and finance charges have dipped to Rs 4 crore Rs 16.73 crore. Higher depreciation charges have been provided for Rs 42.80 crore Rs 28.53 crore. Export income has gone up to Rs 315 crore Rs 208 crore during the first half of the current fiscal.

The multimedia segment, comprising two strategic business units namely 2D/3D/Special effects and CBT/CD Titltes/Multimedia Products, have together earned Rs 175 crore Rs 105.39 crore. The 2D/3D/Special Effects unit has been a major revenue earner contributing to 90.9 per cent of the turnover for the segment while the CBT/CD unit amounted only to a meagre 9.09 per cent of the revenue.

The business software segment, with a mix of four strategic business units, has accounted for Rs 142 crore Rs 108.75 crore in the quarter. The banking/financial services unit accounted for 18.85 per cent, insurance 19.44 per cent, enterprise solutions 43.46 per cent and technology solutions 18.45 per cent.

Among the projects in the pipeline are an offshore development order from Mypage.com, a personal website creation involving a background of about 100 stores in the US and an intranet order from Wescorp Inc, one of the largest financial services corporation of the US. The company is also working with Ricoh Inc of Japan to develop XEF Extended ERP Framework base interfaces. Pentafour has inked an agreement with CTG Inc, one of IBM8217;s preferred vendor, and is expected to take up certain critical software development projects.

V Chandrasekaran, chairman and managing director of PSEL, said, 8220;the company is highlighting its concentration on the Mamp;As and JVs for which the ground work is currently under progress. Corporates with vigilant parameters would be identified to spread the company in its fullest strengths and fervors.8221;

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The JVs and Mamp;As are in line with the company8217;s plan for a 100 million expansion programme. While 40 million is being met by internal accrual, 60 million is expected to be met by the ADR issue. The issue, which has obtained the requisite approvals from the Central government, is likely to take off next month.

PSEL has already identified about six to seven firms in the US, Japan and south Asia, in both areas of multimedia and business software units. These mergers and joint ventures are expected to be finalised in about a month8217;s time.