Satyam Computer Services has posted a 36.5 per cent increase in net profit at Rs 119.43 crore, for the quarter ended December 31, 2001, as against Rs 87.5 crore posted for the corresponding period of the last fiscal.
Total income rose 34 per cent at Rs 446 crore compared with Rs 332.78 crore in the previous period.
Total income included an other income component of Rs 10.23 crore, almost double from Rs 5.21 crore previously.
However, for the sequential quarters, net profit has come down by about 11 per cent from Rs 134.08 crore posted for the quarter ended September (Q2), and total income declined by 1.65 per cent from Rs 453.5 crore.
A drop in other income in the last quarter to Rs 10.23 crore from Rs 26.87 crore in Q2, coupled with billing rate pressures have resulted in the decline in the quarter after quarter performance.
"The fears that the September 11 terror attacks on the US will have a major bearing on our performance did not come true and hence we have revised our income from software services projections to a range of Rs 1,714 crore and Rs 1,729 crore with operating margins lying in the range of 33 to 34 per cent," Satyam chairman B Ramalinga Raju said.
"These projections are being made, keeping in view the merger of our four overseas marketing subsidiaries and Satyam Infoway's software services division acquisition. Our margins would have been still better if not for these two developments," Raju said.
Earnings per share (EPS) for fiscal 2002 is estimated to be between Rs 3.10 and Rs 3.40.
The company expects the income from software services to be between Rs 440 crore and Rs 455 crore for the current quarter that ends in March. It expects the operating margins to be in the range of 30 to 31.5 per cent for this quarter.
There is a significant shift in the business composition of the company in first nine months of the current fiscal with the onsite business gaining dominance over the offshore pie.
While in the first quarter the onsite revenues contributed 41.38 per cent to the total revenues, in the second and third quarters, they increased to 45.11 and 47.78 per cent.
Offshore revenues contribution for the last three quarters declined gradually to 58.62 per cent, 54.89 per cent and 52.22 per cent respectively.
"The thinking that offshore offers cost advantage to the overseas companies and hence there will be substantial shift to this model has not worked for two reasons. Customers wanted to have close monitoring of the projects and have become more cautious about their decisions on migrating the projects from on-site to off-shore," Ramalinga Raju reasoned.
During Q3, the company added 27 new customers including six US based Fortune 500 companies and a US based leading insurance provider. The customer acquisitions are also representative of new opportunities being pursued in high vale services such as data warehousing, CRM, business intelligence and package implementation, a company release said.
Revenues from the north American region continued to be higher at 76.98 per cent, while Europe, Japan and other parts of the world contributed 12.39 per cent, 1.6 per cent and 9.03 per cent, respectively.
Manufacturing line contributed 31.67 per cent to the revenues with banking and finance standing second at 24.1 per cent.
Insurance, engineering and others shared the revenue pie with 13.95 per cent, 2.45 per cent and 27.83 per cent stakes. Total manpower figure of the company has declined by 86 people to 8311 in Q3 as against 8397 in Q2.
