Satyam's Q2 net up 42 pc

BANGALORE,INDIA: Global consulting and information technology services company Satyam Computer Services Ltd today reported a consolidated net profit of Rs. 580.9 crore ($120 million) for the second quarter ended September 30, 2008.

The result as per Indian GAAP standards reflects a YoY increase of 42.0 per cent and a sequential increase of 6.1 per cent. While the revenue has been posted at Rs.2819.29 crore, a YoY increase of 38.8 per cent and a sequential increase of 7.6 per cent, EBITDA margin for the quarter was 23.1 per cent, said a press release.

The EPS for the second quarter was Rs. 8.63, which showed a YoY increase of 41.0 per cent and a sequential increase of 5.8 per cent.

“The second quarter was challenging in many respects, as problems in the US financial industry affected other regions and sectors,” said Satyam chairman and founder B. Ramalinga Raju.

“Despite this background, a heightened focus on operational efficiency, a comprehensive services portfolio and an ability to provide true transformation have enabled Satyam to excel.”

Satyam expects a consolidated revenue between Rs 11,273 crore and Rs 11,475 crore for the financial year, which implies a growth rate of 33.0 per cent to 35.4 per cent over FY 2008.

EPS for the full year is expected to be between Rs. 33.57 to Rs. 34.10, implying a growth rate of 33.0 per cent to 35.1 per cent.

And for the third quarter of the current financial year the revenue is expected to be between Rs 2,945 crore and Rs 3,034 crore, implying a growth rate of 4.4 per cent and 7.6 per cent; EPS for the quarter is expected to be between Rs. 8.39 to Rs. 8.6.

“In the second quarter, Satyam demonstrated its ability to succeed even in difficult economic environments, an indication that our strategies provide a comprehensive suite of end-to-end services in key industries and regions is effective,” said Satyam Chief Financial Officer Srinivas Vadlamani.

“While we anticipate some near-term difficulty as we move ahead, we are confident that our approach will enable Satyam to continue to thrive long into the future,” he added.