DSQ Software Down But Not Disheartened 

Going by the performance indicators,

the company grew by only 17% to touch about Rs 263 crore in the last fiscal as

compared to Rs 224 crore in the previous year. The net profit also showed a

marginal growth of 13% to clock Rs 49 crore as compared to Rs 44 crore in the

previous year.

If we look at the industry in general,

the growth seems to be completely out of place and does not jell with the

industry standards. Even the earnings per share of the company for the last

fiscal stood at Rs 16 as compared to Rs 22 in the previous year. The net margin

was also as low as 18%, though DSQ hopes to improve it to 25% in the next

fiscal.

DSQ

had a change in its top honcho, with Pawan Kumar of IBM fame taking over the

mantles of the company. The company had 40% of its revenue coming from onsite

work. In the ensuing fiscal, it hopes to increase the onsite share to 60%. The

rate of realization from Europe improved by 20% with the region contributing 36%

of the total revenue. The US continued to be DSQ’s safest bet at 52%. In the

next fiscal, the company hopes to get 55% of the revenue from the US and 35%

from Europe.

The

company saw 45% of its revenue coming from repeat business with the top 10

customers accounting for 42% of the business. It hopes to increase the repeat

business orders to 55%, with the top 10 customers contributing 47%. Ecommerce

contributed a significant chunk to its revenue with

28%.

The company plans to go for acquisitions of technology

solution providers, and has set aggressive plans for the next fiscal. It will be

interesting to note how it goes about in achieving its targets, with the last

year’s performance being below par. DQ

Fact Sheet

PRODUCTS AND SERVICES: Software services and products

START-UP YEAR: 1993 EMPLOYEES: 1,624 BRANCH OFFICES: 7 ADDRESS: 407-408, G R

Complex, Chennai 600 035 TEL: 434 6901, 6907 FAX: 434 7309  WEBSITE: www.dqsoft.com