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Satyam net rises 100 pc in Q2

Our Bureau

HYDERABAD, Oct. 24

SATYAM Computer Services Ltd has recorded total income of Rs 453.50 crore and a net profit of Rs 134.08 crore for the second quarter ended September 30, 2001 as against a total income of Rs 283.39 crore and a net profit of Rs 66.94 crore for the corresp onding quarter last year.

This reflects an increase of 59.73 per cent in revenues and 100.29 per cent in net profit over corresponding quarter last year. For the fiscal ended March 31, 2001, Satyam had recorded total income of Rs 1,241.67 crore and net profit of Rs 316.16 crore.

For the six months ended September 30, 2001, Satyam recorded total income of Rs 874.52 crore (Rs 524.64 crore), which is up 66.68 per cent over same period of fiscal 2000. The net profit for the first half was Rs 255.54 crore (Rs 117.31 crore) reflecting an increase of 117.85 per cent.

The board of directors, which took on record the company results here on Wednesday, has recommended an interim dividend of 25 per cent on par value of Rs 2 per share.

Total income and net profit for the second quarter have recorded a sequential increase of 7.71 per cent and 10.39 per cent respectively. The earnings per share was Rs 4.26 on a par value of Rs 2 per share.

The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said ``We are pleased with our financial performance for second quarter during a challenging and turbulent period for the IT industry. The prevailing industry-wise uncertainty brought by multitude of circumstances, including the tragic event of September 11, has enlarged the decision making cycle. The heightened uncertainty may have an effect on business prospects in the immediate quarters.''

Mr Raju said ``However, we shall strive to maximise opportunities and take appropriate steps to sustain growth in the medium to long term. Our alliances with more than 40 leading technology firms enhances the bandwidth of services that we can offer exist ing clients and also provides us better access to new clients and markets.''

Loss under US GAAP: However, with Satyam reporting results in conformance with the US GAAP, the results present different picture when compared to the Indian GAAP.

While Satyam recorded a profit of $28 million for Q2 as per Indian GAAP, the loss of $37.63 million for Q2 ($9.97 million during same time last year) as per the US GAAP has been primarily on account of -- losses incurred by subsidiaries and joint venture s of $5.74 million. It also reflects amortisation of goodwill expenses of $59 million and amortisation of deferred stock compensation of $2.45 million.

The Q2 net loss includes a one-time non-cash charge by Sify of $110.31 million towards impairment of goodwill and other acquisition costs as a conservative response to the decline in market valuation of Internet stocks.