The Hindu : Business : Satyam’s net jumps 45% at Rs. 548 cr.

Online edition of India's National Newspaper
Saturday, Jul 19, 2008
ePaper | Mobile/PDA Version

Business

Business

Satyam’s net jumps 45% at Rs. 548 cr.

Special Correspondent

— PHOTO : H. SATISH

ROBUST GROWTH: Ramalinga Raju (left), Chairman and Founder of Satyam Computer Services, at a press conference in Hyderabad on Friday.

HYDERABAD: Satyam Computer Services posted a net profit of Rs. 547.70 crore in the first quarter of 2008-09, a rise of 44.8 per cent against Rs. 368.28 crore in the corresponding period last fiscal, in terms of Indian GAAP (generally accepted accounting practices).

The revenue growth was pegged at Rs. 2,620.83 crore (Rs. 1,830.19 crore in the first quarter of 2007-08) and the company was able to maintain the revenue guidance, said B. Ramalinga Raju, Chairman of the company.

Addressing a press conference here on Friday, Mr. Raju said the revenue guidance for the whole year would be between Rs. 11,181 crore and Rs. 11,363 crore, enabling the company to cross a significant milestone of Rs. 10,000 crore-plus revenue run rate. This implied a growth rate of 32-34.1 per cent over 2007-08. Earnings per share improved by 43.9 per cent to Rs. 8.16 paise in the first quarter. Revenues from Asia-Pacific markets shot up significantly, compared to North America. European markets contributed relatively higher revenues.

The company hedged $675 million (50 per cent of its dollar earnings), resulting in an exchange loss of Rs. 36 crore due to weakened rupee.

Due to cheaper rupee, the revenue guidance for the whole year was enhanced by 34 per cent.

Though it suffered a loss in the animation business of its BPO, it would be made up in the second quarter. Revenues from the BFSI (banking, financial services and insurance) segment were fluid, while TIMES (telecom, infrastructure, media, entertainment and semiconductor), retail, transportation, and logistics segments had done well.

Satyam was alert to the U.S. economic slowdown due to rising inflation and energy costs, said Mr. Raju, who pointed out that its recent acquisition of Bridge Startegy Group and Nitor Global Solutions enabled the company to clinch three large deals in the first quarter.

20 large deals

The company was looking at 20 large deals in the range of $40-100 million in the realms of engineering manufacturing, infrastructure management services and BPO, said Chief Financial Officer Srinivas Vadlamani.

The attrition rate came down to 10.95 per cent, while the pay hikes were in the range of 16-18 per cent. The company added 651 associates in the quarter taking its headcount to 51,643.

Satyam shares traded at Rs. 382.95 on the BSE on Friday.

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

Business