The Satyam stock has jumped by almost 15 per cent in the last two trading sessions, much of which has to do with its June quarter results announcement.
Volumes, in terms of man-hours billed, grew by an impressive 6.24 per cent sequentially (q-o-q). But the growth in onsite revenues continues to be higher relative to offshore revenues, which, coupled with the pressure on pricing, led to a 55 basis points drop in operating margin last quarter.
Expecting that this growth in volumes would continue, the company has raised its revenue guidance - Satyam now sees revenues rising between 18 and 20 per cent in dollar terms, against the earlier expectation of a 15-17 per cent growth.
However, thanks to the appreciation in the rupee last quarter, there is no change in the guidance given in rupee terms. Even the EPS guidance has been left unchanged.
Thus, apart from the fact that volume growth is slightly higher than expected, there
