Satyam withstands slowdown, records 46 percent growth

April 21st, 2008 - 10:50 pm ICT by admin  

Hyderabad, April 21 (IANS) Better withstanding the US slowdown, Satyam Computer Services Ltd, India’s fourth largest software exporter, recorded 46 percent revenue growth during 2007-08, crossing $2 billion milestone. Beating bigger rivals like Infosys and Wipro in the net profit, the city-based company posted “impressive” results despite the US economic slowdown and announced acquisition of two firms.

Under he US GAAP (generally accepted accounting principles of the US) , the company posted a revenue of $2.14 billion, a growth of 46.3 percent, over 2006-07 while the net income at $417 million grew by 39.7 percent. The earnings per share (EPS) was Rs.25.24, an increase of 17.7 percent.

Under the Indian GAAP, the company logged a net profit of about Rs.4.67 billion in the quarter ended March 31, an increase of 18.6 percent from a year earlier and a sequential increase of 7.7 percent.

The revenue in the quarter rose to Rs.24.16 billion, a year-on-year increase of 35.8 percent and a sequential increase of 10 percent. The EPS for the quarter was Rs.6.97, a jump of 16.6 percent over last year and 7.6 percent over Q3.

The company has forecast 24-26 percent growth for the fiscal year 2009, given the uncertainties in the US market.

Satyam chairman and founder B. Ramalinga Raju said the company outperformed its competitors in the sector. “Last year we faced a special situation due to depreciation in dollar value by 11 percent, but in spite of this, we were able to register healthy growth rate,” he said.

Reducing dependence on North American market, diversification with regard to industry, region and service, and improving efficiency were the key components of risk mitigation strategy of Satyam.

Satyam president for commercial and healthcare business Ram Mynampati said barring North America, the markets in Canada, Brazil and Latin America are growing. Satyam is interacting with customers, whose focus is shifting from the US to Europe and Asia Pacific.

During the January-March quarter, 21 percent of the revenues came from Europe, which is growing faster than North America.

Satyam’s chief financial officer Srinivas Vadlamani said the company was pursuing 15-20 large deals, worth between $ billion and $100 billion.

The company, which added 22,042 employees during the year and plans to add another 15,000 during 2009, announced that wage revision would be 12 to 14 percent for offshore and 3 to 4 percent for onsite employees.

Satyam also announced that it would spend more than $95 million to acquire two companies. It agreed to buy the market research and customer analytics business of US construction giant Caterpillar for $60 million.

It also decided to acquire S&V Management Consultants, a Ghent, Belgium-based supply chain management consulting firm, for 35.5 million dollars.

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