Hughes Software followed up the decent results and the buoyant outlook announced by the company with a 4.52% surge to Rs 207 in early trades on Tuesday.

The scrip of the software major registered volumes of over 1.14 lakh shares on BSE by 9:57 IST.

On Monday, Hughes Software announced an 8.7% rise in net profit to Rs 13.8 crore for the fourth quarter ended 31 March 2002 compared to Rs 12.7 crore in the corresponding period last year. Net sales increased by 9.8% to Rs 63.7 crore from Rs 58 crore in MQ 2002.

The results came clear above a capitalmarket.com poll estimate - net profit of Rs 9.9 crore-Rs 12.7 crore and net sales of Rs 60 crore-Rs 63.5 crore.

The company said it added seven new clients including Fiberhome, VI Corp, July Systems and Meru Networks during the quarter under review.

However, for the full year ended 31 March 2003, the company registered a 27.4% drop in net profit to Rs 37.9 crore on a 6% fall in net sales to Rs 220.4 crore (Rs 2.2 billion). The company has declared a 40% dividend for FY 2002-03.

But it was the heartening future outlook of the company for FY 2003-04 that propelled the scrip today. The company has projected a growth of 40-45% in net profit and a 35-40% in sales, basing its projections on the boom to be experienced in its new diversifications and an order backlog of $32 million.

Hughes Software is focused on the telecom sector and derives more than 53% of its revenues from the wireless sector. However, the company is feeling the pinch of the sluggishness in the telecom sector globally.

In order to de-risk its business and create added opportunities, HSSL has decided to enter into the business process outsourcing segment. This will be started as an independent operation. HSSL is also diversifying its revenue streams and is working currently for a foray into the banking, financial services, insurance segment.

Hughes Software is a subsidiary of HNS, formerly a unit of Hughes Electronics Corporation. HNS is a networking company, dedicated to providing products and services to build and operate digital communication networks worldwide. HNS is the world leader in VSAT-based networks for voice and data, cellular wireless telephony, packet switching and multi-protocol routing. HE is a world leader in the design, manufacture and marketing of advanced electronic systems. It was a wholly-owned subsidiary of General Motors Corporation, US. HNS-India Inc. is the principal shareholder in Hughes Software

As on 31 December 2002, promoters held 55.57% stake in HSS, while the public, institutions and foreign bodies held 15.74%, 3.99% and 13.32 %, respectively.