• APRIL 24, 2000

Soffia net profit up tenfold.

Soffia Software is a software solutions company that is engaged in enterprise resource planning,e-commerce,internet solutions and customer relationship management.

The company has done exceedingly well for the 3rd quarter of financial year 99--00 with sales zooming by 583% and net profits by a whopping 1,000%(See Table).

The company has declared an interim dividend of 21% for the current year as a result of its excellent showing.Another notable feature of the company is that it is debt free.The equity capital has gone up from Rs 30 m to Rs 40 m during the year on account of a preferential issue of 10,00,000 shares of Rs 10 each on 25.1.2000.

Since the company is registered with the Software Technology Parks of India, its export income shall be free from income tax despite the recent announcement by the finance minister that export income shall be marginally taxed at the rate of 20% from the next financial year progressively upto 100% over the next five years.

(Rs m) 3QFY1999 3QFY2000 Change
Sales 6 41 583%
Other Income - -  
Expenditure 4 25 525%
Operating Profit (EBDIT) 2 16 700%
Operating Profit Margin (%) 33.3% 39.0%  
Interest - - 0%
Depreciation 1 4 300%
Profit before Tax 1 12 1100%
Other Adjustments -  
Tax - 1  
Profit after Tax/(Loss) 1 11 1000%
Net profit margin (%) 16.7% 26.8%
Earnings per share 0.33 2.75 725%

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