The Hindu Business Line : Satyam net jumps 86 pc; revises guidance upwards

Buoyant results
The company recorded software revenues of Rs 1,443 crore and a net profit of Rs 354.12 crore for the first quarter.
Consequent to upward revision, the revenues are likely to be in the range of Rs 6,190-6,290 crore.
The EPS guidance for the year has been revised to Rs 38.90-39.50, up from the previous guidance of Rs 36-36.6.

Hyderabad , July 21

Satyam Computer Services Ltd has recorded 36.3 per cent growth in revenue and 86.2 per cent increase in net profit for the first quarter ended June.

The company recorded software revenues of Rs 1,443 crore and a net profit of Rs 354.12 crore, against revenues of Rs 1,058.70 crore and a net profit of Rs 193.11 crore for the corresponding previous period.

Sequentially, the revenue increase was 9.84 per cent and net profit was higher by 24.4 per cent.

Given the buoyancy in business and current business environment, Satyam, which outperformed its guidance of revenues of Rs 1,359-1,366 crore in the first quarter, has indicated that it would grow by about 29.2-31.2 per cent against 27.5-29.5 per cent indicated earlier.

Consequent to upward revision, the company's revenues are likely to be in the range of Rs 6,190-6,290 crore. In the fiscal gone by, the company revenues stood at Rs 4,792 crore with a net profit of Rs 1,141.73 crore.

Revenue, EPS growth

Mr B. Ramalinga Raju, Chairman, said the revenue and earnings per share for the quarter have exceeded the forecasted range on the back of robust volume growth and favourable exchange movement.

The growth continues to be broad-based across verticals and service offerings.

EPS for the quarter at Rs 10.87 showed sequential growth of 23.66 per cent.

The EPS guidance for the year has been revised to Rs 38.90-39.50, up from the previous guidance of Rs 36-36.60.

Customer base

Mr Raju said that the company added 34 new customers during the quarter and made rapid progress in ramping up existing customers.

The focus on big customers reflected a sequential increase of $10-million customers from 27 to 33 and those in the $5 million increased from 46 to 51.

The dispersion of growth across a larger customer base was evident from the higher growth recorded across the non-top 10 customers.

Offshore contribution continued to increase over the last four quarters by four per cent and is now pegged at 47 per cent.

On subsidiaries, Mr V. Srinivas, CFO, said that some of them are in investment phase.

Nipuna had turned cash positive in the previous quarter and is poised to register revenues of $36 million. During the quarter under review, it recorded revenues of Rs 36.6 crore and a net loss of Rs 6.15 crore.

The Satyam scrip ended Friday at Rs 687 on the NSE against the previous close of Rs 689.20.