The Hindu Business Line : Satyam Q3 net rises 29%

‘Impressive show’: Mr B. Ramalinga Raju, Chairman, Satyam Computers, and Mr Stephen E. Sheridian, Bridge Strategy President and Senior Partner, after announcing the Q3 results in Hyderabad on Monday. –

Our Bureau

Hyderabad, Jan. 21

IT services provider Satyam Computer has registered 32.17 per cent growth in services revenue and profit of 28.59 per cent for the third quarter ended December 31, 2007, over corresponding quarter last year. The company also acquired Bridge Strategy Group for $35 million.

Sequentially, revenue and profit increased by 8.29 per cent and 6 per cent respectively.

The company recorded total revenues of Rs 2,195 crore (Rs 1,661.12 crore) with a profit of Rs 433.25 crore (Rs 337.23 crore). Given the current pace of performance, the company expects to close the year with revenue growth of 45 per cent.

The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said “this is a phenomenal performance reflected through a double digit growth necessitating us to upgrade the guidance”.

Accordingly, the company has indicated revenues at $2,119 million for the financial year.

“Macro economic conditions continue to be buoyant from the company perspective. The impact of the sub-prime crisis needs to be deeply analysed. However, as of now, there are no signs of enterprises lowering their IT spend,” he said.

During the quarter, Satyam added 32 clients, including eight Fortune 500, taking the total number of Fortune portfolio to 181. The company hinted that the number of large deals is also slated for increase. The company had signed up with world’s largest steel maker for total cost optimisation project.

On the sub-prime crisis and its potential impact on the technology sector, Mr Raju said that in spite of the business pressures, there continues to be appetite for outsourcing. This is positive from a services point of view.

The slowdown had both positive and negative aspects. The positive aspect related to enhanced operational efficiencies and revenues. The negative side was that the discretionary spending could come down, he said

“This has been third double digit growth quarter for Satyam and profit also exceeds expectations. There is continued demand for established verticals and the market for consulting and enterprise business solutions is strong. The interactions with customers have been positive and indicative of continued growth,” he said.

“We would be in a better position to quantify the impact of the US slowdown, if at all, when we begin analysing the business potential for the next financial year,” he explained.

EURONEXT LISTING

The company is poised to list its existing American Depository Shares on NYSE Euronext, making it the first company to list its shares on the NYSE and Euronext under the symbol SAYE.

This would make investing in Satyam easier and enable extended trading and enhance the organisation’s visibility, Mr V. Srinivas, Chief Financial Officer of Satyam, explained.