The share price of Hughes Software soared to an intraday high of Rs 178.70 on reports of a block deal.
The stock closed 13.85 per cent higher at Rs 171.80 on the BSE. Over 38.52 lakh shares were traded on BSE and almost 67.60 lakh were traded on the NSE.
As per the market talk, a block deal of around 10-12 lakh shares took place at a price of around 155-160 per share. It is believed that Unit Trust of India was the selling party. However, the buyer is not known.
For the first-quarter ended June 30, 2002, Hughes Software registered a massive 76.5 per cent decline in the net profit to Rs 4.4 crore compared with Rs 18.7 crore in the corresponding quarter of the previous fiscal. Net sales during the quarter dipped 25.3 per cent to Rs 47.4 crore (Rs 63.4 crore).
Hughes Software added 10 new customers for its telecom products and three new customers for its software services duirng the quarter ended June 30, 2002. It also reported having an order backlog worth $20 million. The company is a specialist in convergent network software, and is a leader in providing GPRS, UMTS, VoIP software to original equipment manufacturers.
Last year, Hughes Software underwent a change in parentage, after General Motors entered into an agreement to sell Hughes Electronics Corporation to EchoStar Communications Corp for $25.8 billion in cash and shares.
The company derives substantial revenues from Hughes Electronics, which may continue. In order to further de-risk its business, and create more new opportunities, Hughes Software has decided to enter into business process outsourcing. This will be started as an independent operation.
Hughes Software is a subsidiary of Hughes Network Systems, a unit of Hughes Electronics Corporation.
Hughes Network is a networking company dedicated to providing products and services to build and operate digital communication networks worldwide. It is the world leader in VSAT-based networks.
Hughes Electronics is a world leader in the design, manufacture, and marketing of advanced electronic systems. It was a wholly-owned subsidiary of General Motors.
