With telecom major Himachal Futuristic Communications making a foray into software development by launching a novel product for hospital management, the stock should witness a fresh rally. The stock, in the last ten trading sessions, has moved from Rs 127 to Rs 218, which translates into a gain of 72 per cent.

Analysts expect this software to contribute over Rs 10 crore to the revenue of the company during the current fiscal. Even if HFCL is able to sell 2,000 copies of `Medisoft', it will rake in revenues to the tune of Rs 50 crore. The company expects the software, which is designed to manage entire hospital functions - from diagnosis to billing and inventory management - to generate a revenue of Rs 120 crore in three years. The company is not taking into account any exports for the product. The software will be available at Rs four to five lakh and a copy of the product can be accessed by five terminals in an organisation. The company will charge another Rs20,000 for extending it to additional terminals. The company also plans to add more functions to the product and enhance features in this software to provide total solutions to hospital management and medical fraternity.

Medisoft has modules to handle operations of reception, out and in patient divisions, operations theatre, investigation services, administrative services, pharmacy, inventory and general stores, blood bank, billing, finance accounting and personnel.

The company has shown a marginal growth of 9.6 per cent in turnover to Rs 77.35 crore for the three-month period ended June 30, 1999. On the other hand, net profit zoomed by 205.2 per cent to Rs 8.33 crore. This shows that the company's efforts to streamline its internal operations have paid rich dividends. In the first quarter of the current fiscal, the company profit margins has improved substantially. Operating profit margins improved from 5.2 per cent to 18.3 per cent and net profit margins rose from 3.9 per cent to 10.8 per cent.