29. DSQ Software: Smart Mix, Quick Fix

The Chennai-based company posted an above-industry growth of 67%, shooting from Rs 263 crore in 1999-00 to Rs 438 crore last fiscal. Net profits also grew, by 127% to Rs 112

crore, though operating margins improved only marginally–from 37% to 38%. But when it came to paying out a dividend, the company ignored the downturn, dishing out 30%, compared to 15% the year before. Application systems continued to be the core strength area of this 100%

EOU, accounting for 32% of revenues, while engineering consultancy and CAD brought in another 12%. E-com solutions showed a big jump during the fiscal, contributing 28%.

As opposed to the industry trend, the company reversed its onsite-offshore mix, with 60% revenues coming from onsite development this fiscal, against 40% the year before. Also, it marginally reduced its presence in Europe, though 32% of its revenues kept coming from the region.

APAC, with 17%, accounted for another growing revenue stream, thus making DSQ quite insulated against the US downturn–only 48% of revenues came from the North American market.