VisualSoft Technologies

The medium-sized Hyderabad-based company slipped from its Top 5 ranking of
last year to #11 due to a fall in its growth rate in the last two quarters of
fiscal 2001. All was going well for the company till the slowdown in North
America inflicted a negative impact on the performance. Revenues of the company,
which has an equal focus on software services and products, grew by 93% to Rs
131.35 crore, while net profit leaped by 130% to Rs 65.31 crore. The company’s
gross block grew by 63% to Rs 49.85 crore. VisualSoft held the #22 position in
gross block growth, #10 in sales growth and #13 in profits growth. VisualSoft is
a technology-focused company with specialization in the development of software
products and services. Its focus areas are the Internet, knowledge management
and mobile technologies and the company has developed a number of products,
which includes developer suites and components and Web-based application
products. The company has a portfolio of more than 55 products, including
applications for enterprises and developers. The slowdown had a dampening effect
on its products division, which affected the overall growth rate. The share of
its product revenues is likely to fall further in the coming quarters, impacting
its margins.