SSI has recorded a quantum jump in income from operations from Rs 224 m in the third quarter of 1999(ended 31st March) to Rs 533 m in the third quarter of the current year, a jump of 138%. Similarly net profit jumped from Rs 42 m to Rs 105 m a rise of 150% .
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SSI, formerly known as Software Solutions Integrated is a Chennai based education major that initially imparted education in oracle based programs and has now graduated into providing education in areas such as Java, CRM, E-commerce and other emerging technologies.
The excellent results posted by the company is proof of the fact that demand for computer education is growing by leaps and bounds in the country. However with the mushrooming of more and more computer education companies, the company’s topline growth is likely to be under pressure.
The main reason for the company’s net profit jumping up is the result of embarking into high end education programs such as e-commerce with higher margins and also increasing its presence in the areas of software solutions.
In order to increase its presence across the globe the company recently came out with a Global Depository Receipt issue for Rs 4 bn, which was oversubscribed by more than 16. The company is likely to use its proceeds for acquiring more companies abroad.
The company is increasingly seek to broadbase its revenue structure by reducing its dependence on education as the main source of income and trying to garner more revenue form areas such as software solutions, maintenance, re-engineering. According to the promoters vision these areas with higher profit margins will constitute the main source of income for the company in the years to come.
The company has entered into a joint venture with NASDAQ called Indigo Markets, which shall carry out computerisation for NASDAQ’s Japanese and European operations.
Similarly SSI Technologies Ltd. which was specifically spun off to carry out the software implementation programs of the company has been commissioned to carry out the online computerisation for the state railways of Thailand.
Similiarly SSI has entered into a joint venture with a leading Hong Kong based firm to tap the burgeoning markets in China.
Thus overall SSI is poised to grow rapidly in future.