Satyam Q3 profit rises on outsourcing

MUMBAI: India's fourth largest software services company, Satyam Computer Services Ltd, reported its quarterly profit rose, above expectations, as growing outsourcing by overseas clients lifted business.

The Hyderabad-based firm said net profit was Rs146 crore ($32 million) in its third quarter ended December 31. That compared with a reported net profit of Rs117 crore a year earlier and Rs148 crore in the second quarter.

A Reuters poll of 15 brokerages had estimated a net profit of Rs 137 crore on sales of Rs630 crore.

Satyam's results came after larger rivals Infosys Technologies Ltd and Wipro Ltd announced higher-than-expected profits and pointed to further growth on the back of rising contracts and stabilising billing rates.

Satyam, also listed on the New York Stock Exchange, has operations in 45 countries, employs more than 11,000 employees and has more than 300 clients, including General Electric and Ford Motor Co.

Satyam's shares have jumped 150 percent from lows hit in April 2003, outperforming the broader Bombay Stock Exchange information technology index, which gained 92 percent in the same period.

© Reuters