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  • APRIL 24, 2000

Sierra does well.

Sierra Optima Limited is a software company that is basically engaged in e-business solutions.It develops integrated solutions using the internet as a platform.The company came out with an issue in 1995 .

The two most noteworthy features relating to the company are that it has achieved a 33% increase in net profits despite providing for additional depreciation of Rs 12.77 m as a consequence of following the accelerated method of depreciation increasing it from 33% to 40%.

The second commendable feature is that as opposed to projections in the offer document for the year 2000 of net sales of 86 m, profit after tax of 38 m and earnings per share of 11.59, the company achieved respective figures of 203 m, profit after tax of 55 m and eps of 16.70.

Thus an extremely bright future lies ahead of the company as it has shown a tendency to outperform.

(Rs m)FY1999FY2000Change
Sales 152 203 34%
Other Income 1 2 100%
Expenditure 100 120 20%
Operating Profit (EBDIT) 52 83 60%
Operating Profit Margin (%)34.2%40.9% 
Interest 1 1 0%
Depreciation 11 28 155%
Profit before Tax 41 56 37%
Other Adjustments -  
Tax - -  
Profit after Tax/(Loss) 41 56 37%
Net profit margin (%)27.0%27.6%
Earnings per share12.42 16.97 37%

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