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Wednesday, Nov 06, 2002

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Satyam Computer attracts FII interest

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MUMBAI, Nov. 5

THE stock of frontline tech company Satyam Computer attracted considerable interest on the bourses today, recording significant volumes in a relatively flat market, and ending among the top gainers at the day's close. According market watchers, the activity in the counter was primarily on account of foreign institutional investors' (FIIs) buying.

The company's stock closed the day at Rs 249.80 on the BSE, up 3.44 per cent with trading volumes of 89.16 lakh shares. On the NSE, the stock closed at Rs 248.75, gaining 2.98 per cent over the previous close with 1.92 crore shares being traded.

Deliverable quantity (to traded quantity), however, shows lower percentage points; about 9.98 per cent traded shares were presented for delivery on the BSE, while the corresponding figure on the NSE was 8.91 per cent. The deliverable quantity, in fact, has not breached the 20-per cent mark since June 14 on the NSE.

Market analysts attributed the significant volumes in the stock to increased FII interest on account of strong quarterly performance reported.

"The company has posted good results for the quarter coinciding with the general FII inflow, hence the increased buying activity. Besides, if you look at the market now, there are not many options in the tech sector," said an equity analyst with a local brokerage firm.

The company did far better than market expectation to post a net profit of Rs 118.16 crore for the quarter ended September 2002 as compared to Rs 108.46 crore for previous quarter depicting a nine per cent sequential growth.

However on a year-on-year basis, net profit declined by 12 per cent compared to Rs 134.08 crore in the corresponding period last year. Meanwhile, net sales for the quarter were reported at Rs 499.14 crore as against Rs 463.8 crore in the June-ended quarter.

The company also added 23 news clients, including Johnson & Johnson during the September-ended quarter compared to 27 in the same period last year.

"Another positive for the counter, in terms of business fundamentals is that the company's clients accounts have been growing at a good rate. Also, its dependence on GE, one of its largest clients, is coming down," the equity analyst said.

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