The Hindu Business Line : Expanded services, markets lift Satyam net up 18.6%

Strategic diversification: (From left) Mr Ram Mynampati, President, Healthcare, Commercial,Satyam Computer Services Ltd; Mr B. Ramalinga Raju, Chairman; and Mr V. Srinivas, Chief Financial Officer, at a press conference held in Hyderabad on Monday. —

Our Bureau

Hyderabad, April 21 Satyam Computer Services Ltd registered income of Rs 2,416 crore, with a net profit of Rs 467 crore for the fourth quarter ended March 31, 2008, reflecting a growth of 35.8 per cent in revenue and 18.6 per cent in net profit.

Sequentially, income and net profit were up 10 per cent and 7.66 per cent respectively.

The company announced 30.7 per cent growth in revenues and 20.2 per cent higher profits for the financial year ended Mach 31, 2008 as per Indian GAAP.

Factoring the US slowdown and its impact on the tech spend in banking and financial services, Satyam provided a guidance of 24-26 per cent for fiscal 2009, indicating revenues in the range of Rs 10,500 crore- Rs 10,670 crore.

Satyam announced the acquisition of S&V Management Consultants for $35.5 million, the Caterpiller Market Research & Customer Analytics Operations and buyout of 50 per cent stake of Computer Associates in their joint venture.

For the fiscal 2008, the company recorded total stand-alone services income of Rs 8,473 crore with profit of Rs 1,688 crore as against total services income of Rs 6,485 crore, with a profit of Rs 1,405 crore.

The company proposed a final dividend of 125 per cent, thereby taking it to 175 per cent.

The Chairman of Satyam Computer, Mr. B. Ramalinga Raju, said “the numbers reflect exceptional performance as we expanded services, industry capabilities and regional presence. This has meant larger engagements helping customers in their business transformation.”

The company crossed the $2-billion mark, with the second billion coming in two years after the first was achieved in 14 years, he said

Providing a cautious outlook for the fiscal 2009, Mr Raju said “because of economic challenges in major markets, we are increasing our focus on ways the organisation could sustain continued growth. Diversification, with regard to industry, region and service, is one way to maintain success.”

Mr Raju said “Satyam outperformed many companies in the sector. The industry was faced with special circumstances with the dollar value declining by 11 per cent.”

IFRS reporting

Satyam also posted its audited results for Fiscal 2008 in accordance with the International Financial Reporting Standards. IFRS is a compilation of principle-based standards designed to enable a more universal understanding of operational reporting. As per IFRS, Satyam revenues for 2008 are up 46 per cent and net profit up 39.7 per cent.