The Hindu Business Line : Satyam chasing 20 mega deals

The nature and scope of the engagement and size of these deals too is getting bigger from $50-$200 million, according to Mr. Ram Mynampati, President, Healthcare and Commercial, Satyam Computer.

While US accounts for about 60 per cent of the total business now, these deals could change that mix further with a slant towards non-US markets, he explained.

Performance

The Chief Financial Officer of Satyam, Mr. V. Srinivas, said the highlight of third quarter has been the continued improvement in all operating parameters.

Increased productivity, resulting from higher utilisation, increased billing rates and offshore shift, led to 164 basis points improvement in margins.

Mr Srinivas said that the attrition level had come down and is now at about 13.1 per cent, which is amongst the best in the industry. Significantly, the retention level at the leadership level too has gone up significantly.

“The company has changed its hedging policy a bit and has stepped up overall hedge to about 75 per cent and this is now at about $1 billion. This has helped us save about Rs 35 crore.”

On margin erosion, Mr. Srinivas said there has been no erosion in margins. In fact, the company has secured higher billing rates which has gone up by about 2.3 per cent. Over the last nine months, billing rates have gone up by about 4 per cent. Even the rupee strengthening has been factored and the situation is under control.

Alongside this, the offshore component has gone up by about 1.8 per cent and the overall utilisation levels too are up. Given these internal changes, there is potential for gains, Mr. Srinivas said.

The company now has about 44,847 professionals as of December, and added about 3,424 associates, including 2,128 trainees. In all Satyam has about 49,199 associates. The company is poised for gross addition of about 17,000 people during the fiscal, with net addition at about 14,000.

Asked about reserves and their usage, Mr. Srinivas said that the company has invested about $100 million in four acquisitions and has a very robust hedging strategy. The approach has been very cautious with wait and watch strategy.

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