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Fatter pay-packets for Satyam employees

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CIOL Bureau
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HYDERABAD: Referring to Satyam crossing the US$1 billion mark in terms of revenue, B Ramalinga Raju, founder and chairman of Satyam said, "This is a significant landmark as far as Satyam is concerned. We feel proud to be the youngest IT company and the first one from Andhra Pradesh to achieve the distinction.''





Followed by Infosys and TCS, the Hyderabad-based Satyam too proposed a bonus issue of 1:1. EPS for the year were recorded at Rs 30.5 excluding profits from sale of stake in Sify.





The revenue guidance for the fiscal 07 is expected to be in the range of Rs 6000-6100 crore implying a growth of 25.2-27.3 per cent increase. EPS guidance for FY 06-07 is projected in the Rs 36-36.3 range.





"We have set realistic projections. I don't think the guidance to be conservative. With the kind of clients we have to make assessments at the level of each of them," opined Raju.





Satyam's subsidiaries Nipuna Services Limited, Satyam Computer Services (Shanghai) Company Limited and Knowledge Dyanamics Pte Limited suffered losses in the quarter ended March 31 while Satyam Technologies Inc and Citisoft Plc enjoyed net profits of US $ 0.04 million and US $ 0.16 million respectively.





Nipuna recorded a revenue of US $ 20 million during the fiscal 05-06.





Citisoft, acquired last year posted net revenue of US $ 3.74 million. Satyam doesn't intend to tamper with the investment management consulting firm's brand. "We want to retain it because of the brand it has in the market," reasoned Raju.





Knowledge Dyanamics, however, is being integrated into Satyam, said Raju. The transfer of Knowledge Dynamics' people, assets and business, which started on April 1, is expected to be complete within two months.





Satyam's joint ventures with Computer Associates and Venture Corporation posted net profits of US $ 0.06 million and US $ 0.36 million respectively.





The fourth largest IT exporter in the country plans to continue its policy of mergers and acquisitions. "M&A will continue to be an integral part of Satyam's plans. We keep our options wide open. We will do it in an aggressive manner," said Raju.





Echoing Raju's remarks the chief financial officer said: "We will continue M&A whenever there is an opportunity but that should be in line with our business model."





Salary hike is in the offing for Satyam's on shore and off shore employees. The hike is likely to be effective from July 1. "Our salary packages are fairly competitive," remarked Raju.





Speaking about the attrition rate, Ram Mynampati, president of Satyam said, "Our strategy is to attract and retain talent. We think that our measure to bring down the attrition rate will work out." Satyam's current attrition rate is 19 per cent. Satyam recruited 3,079 in Q3 taking its total strength to 26,511 excluding those from its subsidiaries.

























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