Satyam Q3 net up 36%, beats forecast

MUMBAI: Satyam Computer Services Ltd. said on Monday its October-December net

profit rose 36.5 per cent over the year ago, but fell 11 per cent from the

preceding quarter, performing better than market expectations.

Satyam, India's fourth-largest software exporter, said before market hours,

its net profit rose to Rs 1.19 billion compared to 875.09 million a year ago.

Revenue rose to Rs 4.46 billion from 3.33 billion. Satyam also said other

income nearly doubled to Rs 102.38 million, over a year earlier.

A Reuters poll released earlier this month forecast third-quarter net profit

at Rs 1.1 billion, down more than 17 per cent from July-September, but up 27 per

cent from a year ago, and net sales at Rs 4.3 billion.

Satyam had warned in October that tough US market conditions would result in

lower earnings compared to the July-September quarter. Satyam's shares, which

closed at Rs 273.95 on Friday, have risen 16 per cent since January 1, but are

down 17 per cent from this year's high two weeks ago.

Satyam to open China office



HYDERABAD: Satyam Computer Services on Monday said it will open an office in
China within days to serve Chinese and neighboring markets.

"A decision has been made to open an office in China in the next few

days," Satyam said in a statement issued shortly after it posted better

than expected earnings results for the October-December quarter. It said there

are many opportunities there because of China's phenomenal economic growth rate.

"Satyam's attempt is also to understand the nuances of operations in

China better so that it can potentially serve as a conduit for providing

services to related markets," said the company based in Hyderabad, an

emerging technology center in south India.

Infosys Technologies, India's second-largest software service exporter, last

week too said it was considering opening a branch in China to tap its huge

market and pool of talented manpower.

India's growing software industry is increasingly tapping markets like Europe

and Asia to counter the slowdown in the United States, which has been the main

market.

(C) Reuters Limited.