Hughes Software Systems is on the prowl to acquire a medium-sized company in the BPO, IT and ITES segments. 
 
Arun Kumar, president and managing director, Hughes Software, said, "We are looking at an acquisition in the BPO, IT and ITES spaces at both national and international levels. Discussions are going on with a few entities. We have a cash reserve of Rs 160 crore (Rs 1,600 million) and have the capacity to raise more funds if required for this purpose."  

The company on Monday announced a 104 per cent growth in profit for the financial year 2003-04 at Rs 76.9 crore (Rs 769 million), compared with Rs 37.9 crore (Rs 379 million) in the preceding fiscal. Revenues shot up by 63 per cent to Rs 368.4 crore (Rs 3,684 million) from Rs 229.1 crore (Rs 2,291 million). It announced a dividend of 50 per cent for the fiscal 2003-04. 
 
In the fourth quarter to March 31, 2004, the net profit rose by 54 per cent to Rs 21.2 crore (Rs 212 million) from Rs 13.8 crore (Rs 138 million) in the year-ago quarter. Revenues increased by 55 per cent to Rs 103 crore (Rs 1,030 million) from Rs 66.5 crore (Rs 665 million). Hughes added 11 new customers, mostly in the telecom space, during the quarter taking the tally to 250. 
 
The company had projected a net profit of Rs 78-81 crore (Rs 780-810 million) for 2003-04, reflecting a growth of 106-114 per cent on an year-on-year basis. 
 
Sales guidance was pegged at Rs 356-361 crore (Rs 3,560-3,610 million), a growth of 62-64 per cent. 
 
On the reported sale of equity by Rupert Murdoch in the company, Kumar said News Corp had identified areas that were not core to its business and the group was therefore looking at best options for these non-core entities. 
 
For the current financial year, Hughes has given a net profit guidance of 28-32 per cent growth year-on-year, and for sales it sees a 25-30 per cent rise. 
 
For the first quarter, the company expects the profits to grow by 20-21 per cent and revenues by 4-5 per cent.