Satyam net jumps 25% in Q3

Satyam Computer Services reported better than market-expected numbers with its net profit at Rs 145.87 crore for the third quarter ended December (Q3), which is a 25 per cent jump over the Rs 116.73 crore profit registered for the corresponding period last fiscal.

Total revenues grew by 32.5 per cent to Rs 691 crore from Rs 521.5 crore. The Earnings Per Share (EPS) were at Rs 4.63 on par value of Rs 2, which is higher than the Rs 4.05 to Rs 4.15 range it indicated in its guidance issued in October last year.

Revenue was also higher than the guidance numbers which were forecasted to be between Rs 620 crore and 630 crore.

For the nine months ended December, Satyam has posted a net profit of Rs 415 crore as against Rs 344 crore posted for the corresponding period last fiscal. Total income was up from Rs 1,498 crore to Rs 1,897 crore.

Commenting on the Q3 numbers, B Ramlinga Raju, chairman of Satyam said, "Pricing has remained stable and in fact, new customer acquisitions were at marginally higher price than the current average prices. Of the key cost drivers impacting profitability, salary cost increase was the primary reason for the margin decline during the quarter. However, this was partially offset by cost containment in selling, general and administrative expenses."

On year-on-year basis, Satyam's EBIDTA margins were lower by 116 basis points at 29.26 per cent, mainly because of a 0.09 per cent drop in billing rates and 1.26 per cent drop in exchange rate.