The Hindu Business Line : Satyam Q4 net up 21.6 pc

SATYAM Computer Services Ltd has recorded a total income of Rs 725.70 crore with a net profit of Rs 140.84 crore for the fourth quarter ended March 31, 2004, with a 33.85 per cent growth in software services and 21.64 per cent in net profit respectively in rupee terms.

In dollar terms, the revenue was up 41 per cent year on year growth for the quarter. However, rupee fluctuation has impacted the net by Rs 21 crore. This meant the net was down at Rs 140.84 crore instead of Rs 161 crore. The revenues exceeded the company guidance of Rs 690 crore to Rs 700 crore. Satyam revised its revenue guidance upwards twice during last financial year.

The annual revenues for the year on review were Rs 2,541.55 crore, an increase of 32 per cent in dollar terms over the previous year. The annual EPS of Rs 17.64 represents a growth of 20.66 per cent. The sequential growth in software services income over the last quarter ended December 31, 2003 stood at 8.75 per cent in rupee terms as against 9.35 per cent in dollar terms.

The Chairman of Satyam, Mr B. Ramalinga Raju, said: "Our focus on competency enhancement and relationship management has been a key factor in growing existing accounts as well as acquiring new customers. The current customer base, including 101 Fortune Global 500 customers is indicative of the potential for our growth momentum. We shall continue to invest in sharpening our skills and processes for partnering with them in their journey towards business excellence."

Guidance: For the fiscal 2005, while expressing concern about strengthening rupee, the Satyam management gave a guidance of 28-30 per cent growth in income from software services in dollar terms. This is expected to be between Rs 3,097 crore and Rs 3,146 crore. The EPS was projected to be between Rs 20.28 and Rs 20.62. The revenue forecast for the first quarter indicates a growth of 4.5-5 per cent at Rs 728 crore to Rs 732 crore. With the EPS expected to be Rs 4.76 and Rs 4.78.

The board recommended a final dividend of 140 per cent or Rs 2.80 per share. With the interim dividend of 60 per cent, the total dividend works out to 200 per cent against 150 per cent declared for the last year.

When asked to comment if the company considered a bonus offer given the fact that Infosys and Wipro had recently announced, Mr Raju said that "there are various ways of rewarding shareholders and a high dividend from us was one such way."

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