• JULY 20, 2001

VisualSoft : Products woes continue

VisualSoft has posted a QoQ dip of 17% in revenues for 1QFY02. The dip in the net profit figure (excl. extra-ordinary income of Rs 34 m in 4QFY01) is 29%. On a YoY basis the company's revenues have grown by 6% and the net profits have declined by 15%. The company's products sales continue to decline, which have adversely affected its financials. The product sales have declined 59% sequentially. The contribution of products to revenues is 19% compared to 37% in 4QFY01. The remaining 81% of the revenues came from the services business that has registered a sequential growth of 7%.

(Rs m)4QFY011QFY02Change
Other Income210449.4%
Operating Profit (EBDIT) 136 97 -28.9%
Operating Profit Margin (%)39.5%33.9% 
Interest - -  
Profit before Tax12490-27.5%
Extraordinary income 34 -  
Profit after Tax/(Loss) 157 87 -44.2%
Net profit margin (%)45.6%30.7% 
Diluted number of shares (m)19.719.7 
Diluted Earnings per share*31.817.7 
P/E (at current price) 5.5 

At the current market price of Rs 98, the stock is trading at a P/E multiple of 6 times 1QFY02 annualised earnings.

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