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Mr Ramalinga Raju

Our Bureau

Hyderabad, Aug. 26 “If the rupee remains at the current level during the rest of the year, Satyam Computer will gain by about Rs 1,000 crore,” Mr V. Srinivas, Chief Financial Officer of Satyam Computer, told the company shareholders.

Answering queries during the company’s 21st annual general meeting held here on Tuesday, Mr Srinivas said, “If last year was affected by rupee fluctuation, this year we will gain by a weakening dollar. Therefore, the best way to judge an IT services company based in India is by comparing the company’s revenues in dollar terms.”

Earlier, in his address, the Satyam Chairman, Mr. B. Ramalinga Raju, said “despite economic uncertainties and rupee appreciating and growing costs for manpower, the company recorded 46 per cent growth last fiscal.”

Mr Raju said that the company, which has accumulated reserves over the years, plans to step-up inorganic activity, aimed at acquiring new services specialisation and possibly even new geography.

“Sometimes, you may feel that the acquisitions have not worked out as planned. In fact, they take a few quarters to realise their real potential”.

The company invested about $200 million in acquisitions in the last six months and would continue to scout for more, Mr Srinivas said.

Some of the company shareholders sought clarifications from the management on their hedging strategy, relationship with Venture Engineering, growing manpower costs and investment plans.

A fFew shareholders wanted the company management to consider another bonus offer.

Mr Raju said that some of the strategic initiatives that the company undertook over the years have begun to yield results and the company revenues from outside the US are set to go up further.

With regards to a query on the joint venture with Venture Engineering, Mr Srinivas said, “the company stand has been vindicated and we believe that we have good case. Once this is settled, we will be ale to acquire the entire stake in the venture.”

When some shareholders sought the company perspective on hedging, Mr Srinivas explained that there is no perfect way to predict rupee behaviour.

However, the company strategy to have about 50 per cent hedge has continued to hold good.

When a shareholder wanted to know why the company’s brand value was relatively lower now compared to last year, Mr Srinivas said this was directly related to market capitalisation of companies.

The value goes up when the markets are up and vice versa. One need not be too concerned about this, he said.

More Stories on : Outlook | Software | Forex | Satyam Computer Services Ltd

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