Satyam Q4 net profit up 37.2 per cent

BS 200 SCORECARD

Satyam Computer Services posted a 37.2 per cent increase in net profit at Rs 397.50 crore for the quarter ended March 31, 2007, as compared with Rs 289.80 crore in the corresponding quarter of the previous year.

The revenues during the quarter, including other income of Rs 69.37 crore, grew 38.13 per cent to Rs 1,778.40 crore from Rs 1,287.52 crore in the corresponding quarter.

The EBITDA stood at 23.1 per cent. The operating profit margins fell to 23.83 per cent in the quarter from 26.63 per cent in the corresponding previous financial year.

For the full year 2006-07, the global IT consulting services company saw a 14.80 per cent increase in net profit at Rs 1,423.23 crore against Rs 1,239.75 crore in the previous financial year.

Similarly, the revenues for the year rose 27.89 per cent to touch Rs 6,410.08 crore, as compared with Rs 5,012.22 crore in the previous financial year. Similarly, revenues (consolidated) for the year recorded 30.09 per cent growth to touch Rs 6668.36 crore, as compared with Rs 5,125.84 crore in the previous financial year.

Telecom was among the top performing verticals of the company during the year.

Setting aside fears of any effect of the perceived US slowdown, the management of Satyam Computer Services today announced that it was well on its way to nearing the $2 billion mark in FY 08.

It provided a guidance of Rs 7,793-7916 crore, implying a growth rate of 27-29 per cent compared with 2007 and projected the earnings per share (EPS) for the full year to be between Rs 25.32 and Rs 25.73, a growth of 18-20 per cent. For FY 08, the revenue is expected to be between $1.87 and 1.90 billion, implying a growth rate of 28-30 per cent.

Chairman Ramalinga Raju said the company could contain the fall in margins to 62 basis points as against the estimate of a 100 basis point fall.

"Though the rupee appreciated by 6 per cent, the company was still able to not only meet the guidance, but also improve it over. This is a noteworthy achievement," he said. Stating that five of the 35 new customers added during the quarter ended March 2007 were Fortune Global 500 and US 500 companies with $5-10 million deals, Raju said the company could maintain the dependence on US revenues to below 60 per cent, while increasing its businesses in Europe and Asia Pacific regions.

Over 50 per cent of the revenues during the year were contributed by offshore operations, which according to him, offer greater value to the customers and greater margins to the company. For 2007, the company's business process outsourcing arm, Nipuna reported revenues of $38.3 million, a growth of 91 per cent compared with 2006. The revenue guidance for 2008 is $61 million, a growth of 60 per cent over the previous year. As on March 31, 2007, Nipuna had 2,916 associates and an infrastructure to accommodate around 5,000 associates.