The Hindu Business Line : Satyam Q1 net up 16.5 per cent

Mr B. Ramalinga Raju, Satyam Chairman, and Mr Ram Mynampati, President, Healthcare and Commercial Businesses, announcing the results at a press meet in Hyderabad on Thursday. - K. Ramesh Babu

Hyderabad , July 21

SATYAM Computer Services Ltd has recorded total software income of Rs 1,057.81 crore (Rs 802.26 crore in Q1 last year) and a net profit of Rs 190.01 crore (Rs 163.74 crore) for the first quarter ended June 30, reflecting an increase of 35.7 per cent in revenues and 16.5 per cent in net profit over the corresponding quarter last year.

Sequentially, the company recorded 9 per cent growth in revenues and decline of 7.98 per cent over the previous quarter.

The company acquired a Singapore-based business intelligence-consulting firm Knowledge Dynamics in a cash deal. While the revenue was higher at Rs 1,025 crore than the guidance of Rs 1,021 crore, the company revised the revenue guidance upwards to be in the range of Rs 4,536 crore and Rs 4,569 crore, reflecting an annual growth rate of 29-30 per cent. This will take the company revenues past the $1 billion mark. Consequently, EPS for fiscal 2006 is expected to be in between Rs 27.22 and Rs 27.44.

The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said, "Company strategies are leading to higher levels of engagement with customers, thereby aiding in growth momentum. The company added 31 new clients in Q1, of which four are Fortune Global 500 corporations. Europe contributed to one-third of the customer additions this quarter."

Subsidiaries, Nipuna, Citisoft, Shanghai Company, account for about 4 per cent of revenues. Nipuna, Satyam's BPO company, is projected to log $18 million this year and recorded a revenue of Rs 14.49 crore and a net loss of Rs 10.92 crore. "Nipuna witnessed 375 per cent growth last year and is projected to grow by 80 per cent this year. It handles about 21 large corporations and the business is expected to look up," Mr Raju said.

The company stock, which closed at Rs 504 on Wednesday, opened at Rs 502 and slid to Rs 490 before recovering to Rs 512.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
2 NTC properties sold for Rs 862 cr

GDR era returns for Indian companies

`Yuan appreciation to help Indian market'

`Not an impressive show by new fund offers'

Aiyar, Chidambaram discuss composition of oil firm boards

Satyam Q1 net up 16.5 per cent

Tata Chem Q1 net up 42 pc

More global buys by pharma cos likely

Premji enjoys housing loan subsidy!