The Hindu : Satyam income at Rs. 570 cr.

Online edition of India's National Newspaper
Friday, Jul 25, 2003

Business

Business

Satyam income at Rs. 570 cr.

By Our Special Correspondent

HYDERABAD JULY 24. Satyam Computer Services announced software service revenues of Rs. 559 crores for the quarter ended June 30, 2003, thereby exceeding the guidance of Rs.545 crores. It also revised upwards the revenue growth guidance for the current year from 15-17 per cent indicated earlier to 18 to 20 per cent in dollar terms.

Announcing the details at a press conference here on Thursday, B. Ramalinga Raju, Chairman, said the EPS guidance was however being maintained at Rs.15.65 to Rs.16 (as earlier). The guidance revision is in dollar terms only and not in rupee terms in view of the rupee appreciation.

The EPS guidance was being maintained on account of anticipated revenue growth and cost efficiencies. This is despite continuing pressure on prices and margins as also the strong rupee factor, he said.

Total income for the quarter was Rs. 570 crores (Rs. 471 crores), representing a 25.85 per cent growth year on year. The net profit was higher at Rs.121.49 crores (Rs.108 crores).

A major announcement made on the occasion was that international funds would be investing $20 million in Nipuna Services, the wholly owned subsidiary of Satyam, which is into business process outsourcing (BPO). The investments will allow Nipuna to access global relationship network of the new investors, he said.

Nipuna was set up in June 2002 for BPO services with a $4 million commitment from Satyam. Ultimately it plans to develop its own complex, but it is now functioning from a leased space in HITEC City, with 164 employees serving five customers.

For the quarter ending September 2003, the company's guidance is an expected software services revenues between Rs. 563 crores and Rs. 568 crores and EPS between Rs. 3.81 and Rs. 3.86. For the year ended March 2004, income from software services was expected to be between Rs. 2,281 crores and Rs. 2,320 crores (based on exchange rate of Rs. 46 a dollar). The company had taken $45 million forward contracts as hedging against currency fluctuation, he said.

Printer friendly page
Send this article to Friends by E-Mail

Business