Satyam profit grows by 28 percent

HYDERABAD, INDIA: Satyam Computer Services Ltd has posted a net profit of Rs 409.09 crore for the quarter ended September 30, 2007 as compared to Rs 319.81 crore for the quarter ended September 30, 2006.

The profits have grown by 27.9 per cent year-on-year (Y-o-Y) and 8.1 per cent sequentially.

Total Income has increased from Rs 1630.11 crore to Rs 2142.26 crore for the same period. Revenues have increased by 26.8 per cent Y-o-Y and 11 per cent sequentially.

Earnings per share were Rs. 6.12, a YoY increase of 25.1 per cent and a sequential increase of 8 per cent. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin for the quarter was 19.8 per cent.

Providing business outlook for the next fiscal, the company said the revenue growth under Indian GAAP consolidated is expected to be between 26.3 per cent and 26.7 per cent. EPS for the full year is expected to be between Rs. 25 and Rs. 25.1, implying a growth rate of 16.5 per cent – 17 per cent. For the third quarter, revenue growth rate is expected to be between 3.6 per cent and 4.1 per cent; EPS for the quarter is expected to be between Rs. 6.18 and Rs. 6.21.

The parent company ended the quarter with 41,423 employees, an addition of 3,037 employees including 1,889 trainees. The number of employees including the subsidiaries and joint ventures stood at 45,767. Attrition on a trailing twelve months basis fell to 13.9 per cent from 14.9 per cent in Q1 FY08.

Announcing the results, B Ramalinga Raju, founder and chairman said, the second quarter was exceptionally strong as the company reported substantially better than expected revenue, broad based across key verticals, services and regions. “During Q2, Satyam recorded sequential revenue growth of 12.7 per cent in dollar terms. However, continued appreciation of the rupee against all major currencies during Q2 reduced the corresponding growth rate in rupees to 11 per cent. EPS for Q2 was Rs. 6.12.”

“We continue to be optimistic about our future on the back of a stellar Q2 performance. We are, therefore, increasing our revenue guidance to $ 2.07 billion to $ 2.08 billion which translates to a growth rate of 41.5 per cent to 42.0 per cent. The earnings per ADS is also being raised to $ 1.24 which translates to a growth rate of 36 per cent”, he said.

“We continued our global expansion during Q2. Revenue from Rest of World and Europe grew by 27 per cent and 17 per cent respectively in Q2. This growth is supported by the diversified workforce across these regions. India, in addition to being the competency hub is emerging as an attractive market for Satyam”, he added.

Further he said that the company has reached a definitive agreement to acquire UK-based Nitor Global Solutions for a consideration upto 2.76 million pound in an all cash deal.

The company also changing the name of its BPO subsidiary to Satyam BPO Limited from Nipuna Services Limited. “Customers are today much more positively inclined about receiving the entire value chain of services from a single organization and in that context, this move would be in line with market demand”, said Raju.

The Board has approved an interim dividend of 50 per cent for fiscal 2008.