Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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Info-Tech
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IT Training Corporate Results - IT Training SSI net down 93 pc in Q2 Our Bureau
CHENNAI, Jan. 28 SSI Ltd has recorded a 93 per cent drop in its net profit to Rs 1.73 crore for the second quarter ended December 31 as compared to Rs 25.06 crore in the corresponding period last fiscal. Turnover was Rs 66.07 crore (115.42 crore). Staff cost was reduced by 64 per cent to Rs 18.67 crore (Rs 28.95 crore). The company reduced its number of employees to 867 at the end of December 1, compared to 1164 in the previous quarter. A city-based analyst said, "The results are as per the market expectation. On a consolidated global basis, SSI's software services formed 67.4 per cent of the total operating revenues in Q2, compared to 57.14 per cent during Q1. This was a good sign". The company's revenue from training was 32.2 per cent during Q2, down from 42.6 per cent in Q1. Mr Kalpathi S. Suresh, Chairman and CEO, SSI Ltd said in a release, "decisions were put on hold in the first half of the last quarter as clients re-evaluated their software spending and services strategy. However the situation is beginning to stabilise and we are seeing renewed expressions of interest". Going forward, the company expects the operating margins in the software services to improve through the year. Refunds fees for 2 programmes: SSI has said that it had `reversed all student enrolments and refunded fees' obtained for two education programmes (Smartstart and Impact) the company launched recently jointly with the Madras University's Department of Adult and Continuing Education (DACE). SSI said that training revenues in the second quarter (October-December) were impacted by the fall-out of the partnership with the University of Madras. In October, SSI entered into an agreement with the University's DACE to certify the two courses. Subsequently, the University expressed reservations with the agreement. The company and the University are in talks to resolve the issue. However, on its part, SSI has reserved all student enrolments and refunded fees obtained under the programme, said a company release. On December 5, SSI in a press release said, the company signed an agreement with the University of Madras. As per the agreement, students enrolled in `Impact' and `Smartstart' courses, the University's Internet Community College will certify the two courses. However, the University, through a public notice, said it does not have any link with SSI for conducting the programmes. Meanwhile, there was a 22 per cent drop to 40,005 in the student enrolment during October-December 2001, compared to 51,525 the previous quarter. Income from education sector for SSI (consolidated revenues) declined 36 per cent to Rs 48.50 crore during October-December, from Rs 31.06 crore the previous quarter. Mr B.G. Menon, CEO, Education Division, SSI Ltd, said in a release, "The IT education market in India is strongly affected by students' perception of opportunities in the software services sector. This sentiment had turned pessimistic in the recent past. However, we continue to believe in the fundamental strength of the IT education market in India and will continue to deliver training programmes that prepare students for the software services market".
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