The share price of Geometric Software today rose 20 per cent, the upper limit for all non-derivative stocks, following its induction in the compulsory rolling settlement cycle.
Under the weekly settlement till Friday, the upper/lower limit was 8 per cent and 16 per cent in two phases. The stock closed at Rs 315.60, sharply up from an intra-day low of Rs 274 and remained locked at the upper circuit filter since mid-trading session on the Bombay Stock Exchange with a traded volume of 3.47 lakh shares.
The Geometric Software stock has been an out-performer on the bourses since the last three months. From a low of Rs 55.30 on October 1, 2001, the scrip has surged by 470 per cent in three months to the current level of Rs 315.60.
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From less than 10,000 shares traded per day in early October 2001, anything from 1 lakh to 5 lakh shares are traded in a day.
According to dealers, both operators as well as institutions have built up positions in the stock. The company recently said that its board has a proposal to invest in a subsidiary to be formed for the specific purpose of entering into a joint venture with Dassault Systems of France.
The joint venture will undertake software development for the Dassault group of companies. The subsidiary will enable the company to tap a new market, hitherto untapped. However, no estimates have been made public by the company as to what its earnings through the joint venture will be.
As against a loss of Rs 1.60 crore in the quarter ended September 2000, Geometric Software posted a net profit of Rs 3.08 crore in the quarter ended September 2001. A sharp surge in revenues and increase in operating profit margins boosted the company's second quarter performance.
Geometric Software registered a 71 per cent rise in sales to Rs 14.80 crore for the quarter ended September 2001. When compared to the June 2001 quarter, it registered a 5 per cent rise in sales and a 44 per cent surge in net profit during the period.
The company has niche technologies in the $ 6- billion CAD/CAM/CEA market which is growing at around 11-12 per cent annually. The major user industries in CAD/CAM/CEA are automobiles, aerospace, heavy equipment and electronics.
Geometric's leading global customers include Spatial Corporation, SolidWorks, EDS PLM (formerly SDRC and UGS), MSC and Autodesk. The Top 10 clients contribute 78 per cent of Geometric's revenues.