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Digital GlobalSoft

One of the few MNCs listed on Indian bourses, Digital GlobalSoft makes it to the top 3, thanks to its sustained performance over the last few years. A subsidiary of US-based IT major Hewlett-Packard, Digital is ranked #12 in sales, #7 in profits, #11 in sales growth and #18 in profits growth. The company closed fiscal 2003 with revenues of Rs 422.42 crore, up 27% over the previous year, and with a net profit of Rs 106.02 crore, up 14% over the previous year. The company’s gross block was up 43% to Rs 120.59 crore and it was ranked #12 in gross block growth and #16 in gross block size. Digital’s ROCE declined sharply from 46% to 36% giving it a rank of #6. After the acquisition of Compaq Corp by HP, the latter decided to consolidate operations and merge its India-based software services 100% subsidiary HPS ISO with Digital. Post merger, HP’s stake in Digital is slated to increase to 76% by 2005. Its financial performance too is expected to improve sharply by then, although fears of the company’s de-listing by HP and possible price cuts could have a bearing on valuations.


                                      

 

 


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