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.