Financial Daily from THE HINDU group of publications
Friday, Jan 21, 2005
Financial Daily from THE HINDU group of publications Friday, Jan 21, 2005 |
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Info-Tech
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Financial Performance Corporate Results - Software Satyam Q3 net rises 20 pc; ups guidance Our Bureau
Mr. B. Ramalinga Raju, Chairman, Satyam Computer Services Ltd - A. Roy Chowdhury
Hyderabad , Jan. 20 SATYAM Computer Services recorded software services revenues of Rs 891.26 crore and net profit of Rs 174.74 crore, registering an increase of 34.5 per cent (Rs 662.69 crore) in revenues and 19.8 per cent (Rs 145.86 crore) in net profit over corresponding quarter last year. Sequentially, the revenue was up 8.86 per cent in dollar terms, which translates to 5.09 per cent in rupee terms. This change was due to stronger rupee against dollar clipping about Rs 22 crore. The appreciating rupee against the US dollar continues to be a major macro economic factor impacting the company performance. The company has revised its guidance for 2004-2005 upwards marginally at 35.1 per cent for its revenues, up from 34.9 per cent forecast earlier between Rs 3,429 crore and Rs 3,433 crore. The earnings per share for the fiscal is expected to be between Rs 22.90 and Rs 23. Income from software services for the fourth quarter is expected to be in the range of Rs 918 crore - Rs 922 crore, with an EPS of Rs 5.98-Rs 6.08. Explaining the company's third quarter performance, the Chairman of Satyam, Mr B. Ramalinga Raju, said, "the quarter continued to see delivery of industry specific solutions, thereby expanding the number of $1 million clients to 118, reflecting an increase of 22 per cent sequentially. While it took us more than a decade to reach the first 50 mark, it has taken us less than three years for the balance." "The geographical expansion we embarked on is paying off and during Q3 the Europe and Asia-Pacific business reflected a sequential growth of 21.3 per cent and 20 per cent respectively," he stated. "Satyam added 28 new customers in Q3, of which three are Fortune 500 companies.The company's largest vertical, manufacturing reflected a 9.4 per cent growth. "Satyam added 793 associates during the quarter, increasing the strength to 17,665. We are on course to net addition of 4,500 people during this financial year," Mr Raju said. Interestingly, the attrition level was down about 3 per cent at 15 per cent during Q3 compared to previous quarter. The company had scaled up employee compensation by about 4 per cent offshore and 18 per cent onshore. "Nipuna, the business process outsourcing subsidiary with 1,242 employees, continues to perform well and has recorded a growth of 250 per cent in Q3. It has acquired 20 clients, 18 of them are also Satyam clients. Nipuna recorded revenues of Rs 12.38 crore and a net loss of Rs 11.17 crore. We expect to break even next fiscal," Mr Raju said.
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