Financial Daily from THE HINDU group of publications
Friday, Jul 04, 2003
Financial Daily from THE HINDU group of publications Friday, Jul 04, 2003 |
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Info-Tech
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Software Satyam pegs $40-m spend for next fiscal Our Bureau
HYDERABAD, July 3 WHILE projecting an increasing trend towards fixed price contracts in the foreseeable future, the NYSE-listed Satyam Computer Services Ltd, has anticipated a capital expenditure of about $40 million during the fiscal 2004 to finance construction of new facilities and expansion in its offshore centres and new offsite centres outside India. The company is, however, of the view that given the current financial position and expectations and its performance, the available cash is adequate to meet the requirements to augment funds for its working capital and other expenditures over the current fiscal. Given the current scenario, the company may require additional funds to fuel its capital expenditure requirements and may even require additional financing to meet the growing requirements, the company stated in its latest filing with the Securities and Exchange Commission (SEC). In other related statements on its performance, the company maintained that its revenues form IT services excluding inter-segment revenues provided on a time-and-materials basis decreased in fiscal 2003 by 7.2 per cent to 70.9 per cent from 78.1 per cent in fiscal 2002 and revenues from fixed price basis fell by 7.2 per cent to 29.1 per cent in fiscal 2002. During the year, the increase in fixed bid contracts is primarily due to shift in type of contracts from time and material to fixed bid since based on the current market trends majority of the customers prefer to enter into fixed price contracts. The company stated that it expects that revenue from fixed bid contracts will continue to increase in fiscal 2004 since current market trend indicates customer preference towards fixed price contracts. With regard currency rate fluctuations, the company believes that with majority of the revenues likely to be generated in dollar terms in the foreseeable future, its operations will be affected as the rupee gains.
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