Business Daily from THE HINDU group of publications
Wednesday, Oct 24, 2007
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Business Daily from THE HINDU group of publications Wednesday, Oct 24, 2007 ePaper | Mobile/PDA Version |
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Financial Performance Corporate Results - Software Web Extras - Performance
Our Bureau Hyderabad, Oct. 23 IT services provider Satyam Computer has posted 29 per cent higher revenues and 28 per cent increase in net profit over last year. Increase in billing rates, revenues from a much more distributed business and efficient hedging mechanism have helped Satyam grow revenues by 11 per cent and profit by 8.1 per cent sequentially. The company described this “as its best performance in the last five-six years.” Deals announcedThe company announced the acquisition of the UK-based infrastructure management consulting provider Nitor Global Solutions Ltd, and a multi-year deal with Fujitsu Services to provide global sourcing services to Reuters. Satyam posted revenues of Rs 2,032 crore and a net profit of Rs 409 crore for the quarter ended September 30, 2007 and provided revised business outlook for fiscal 2008 at $2.08 billion. The Chairman, Mr B. Ramalinga Raju, said “the second quarter was exceptionally strong as we reported substantially better than expected revenue, broad based across key verticals, services and regions. We continue to win and ramp-up our engagements with strategic clients in our efforts to enable business transformation.” Addressing a press conference here today, Mr Raju said business momentum was such that they plan to step up overall hiring from initial estimates of 15,000 to 17,000 and thereby take the total headcount past the 50,000 mark. Biz compositionThe company has successfully diversified into new regions and the current business reflects a significant change from the past. As against total business of 85 per cent from the US about six years ago, it is now 55 per cent, with Asia Pacific contributing 20 plus per cent and Europe 21 per cent. On a day of buoyant markets, Satyam shares ended higher at Rs 461.75 against the previous close of Rs 448.5 on the BSE.
Satyam ended the quarter with 41,423 associates that reflect an addition of 3,037 associates, including 1,889 trainees. The number of associates including subsidiaries and joint ventures is 45,767. Significantly, the attrition rate on a trailing 12 months basis fell to 13.9 per cent from 14.9 per cent in the previous quarter, based on a series of initiatives, including higher employee compensation. The company added 37 new customers, including eight Fortune 500 companies, and continues to be in pursuit of larger deals across geographies. Satyam expects to post a growth rate of about 42 per cent over fiscal 2007. The Chief Financial Officer, Mr Srinivas Vadlamani, said “strong volumes growth and increased billing rates helped us post 12.7 per cent revenue growth for the quarter. Margins for the quarter declined as salary hikes were finalised. Now that the increments are behind us, higher productivity and enhanced operational efficiencies will help us improve our margins going forward.” Satyam’s billing rates ‘may go up by 2-3%’ Satyam scouting for acquisitions; to expand operations abroad ISO 27001 for Satyam 34 pc rise in Satyam Q2 net More Stories on : Financial Performance | Software | Performance | Satyam Computer Services Ltd
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