Satyam net up 29 p.c.

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ADDING SHAREHOLDER VALUE: B. Ramalinga Raju, Chairman, Satyam Computer, addressing a press conference in Hyderabad on Friday.
ADDING SHAREHOLDER VALUE: B. Ramalinga Raju, Chairman, Satyam Computer, addressing a press conference in Hyderabad on Friday.

Special Correspondent

Revises revenue guidance upwards

  • To pay 50 p.c. interim dividend
  • Recruits 4,025 employees

    HYDERABAD: Satyam Computern Services has announced revenue earning of Rs. 1,601.88 crore from software services for the second quarter ended September 2006, registering a 38.7 per cent growth, as compared to the same quarter last year.

    B. Ramalinga Raju, Founder and Chairman, told a news conference here on Friday that backed by sound financial results, the board had approved an interim dividend of 50 per cent for the current fiscal. The net profit of Rs. 322.34 crore showed a year-on-year growth of 28.6 per cent.

    He said a highlight of the second quarter was the 11 per cent sequential growth in revenue, the highest by the company in the last five years. The addition of 4,025 employees was also the highest-ever quarterly recruitment. Nearly 3,000 of them were recruited at entry level.

    The revenue was significantly higher than the guidance of Rs. 1,521-1,529 crore. In the wake of the growth rate, the revenue guidance for the whole year was revised to Rs. 6,452-6,476 crore. The earlier forecast for annual revenue was Rs. 6,190-6,290 crore.

    Mr. Raju observed that the second quarter witnessed accelerated growth in select verticals as TIMES, healthcare and retail in addition to inline growth in staple verticals.

    Stating that the company was focussed on adding shareholder value, Mr. Raju said the company had also set aside two per cent of shareholding for Restricted Stock Units (RSUs) to be allotted to select leaders in the organisation to improve and retain talent. It would be a non-cash charge for the company.

    Large deals

    Ram Mynampati, President, Healthcare and Commercial Businesses, said the company had reasonably good large deals in the pipeline with guaranteed revenue in excess of $50 million over a period of three years or more. The company wanted to expand its operations to Latin America and towards this end set up offices in Brazil. A portion of the company's new unit at Vizag would be operational by next month-end.

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