DSQ Software

Despite controversy surrounding Chennai-based DSQ Software, the company

continued to show growth in accounting terms. The stock too remained the most

volatile of all listed IT scrips thanks to media reports. DSQ changed the

year-end again, this time closing it for 18 months ended December 2000. Its

previous year-end was 15 months ended June 1999. The company reported revenues

of Rs 521.56 crore in December 2000 and a net profit of Rs 126.87 crore. The

annualized growth rate of sales and net profit was 58% and 112%, respectively.

Its gross block of Rs 333.06 crore grew by 82% and the company was ranked at #11

in revenues, #10 in profits and #6 in gross block. DSQ restructured its

management last year, appointing Pawan Kumar as the chief executive officer.

Kumar, however, resigned shortly after and DSQ is now facing another crisis as

the Securities and Exchange Board of India has questioned some of its

acquisition deals. While Sebi forced the company to cancel one of the

acquisitions made recently, BSE and NSE suspended trading in the company’s

shares. In this backdrop, the immediate future appears bleak for one of the

country’s top software services companies.