The Indian tech-party continues to rock with the fourth-ranked Satyam Computer also cheering the markets by beating its own guidance and Street expectations on fourth-quarter numbers.
HYDERABAD: The Indian tech-party continues to rock with the fourth-ranked Satyam Computer also cheering the markets by beating its own guidance and Street expectations on fourth-quarter numbers.
Not surprisingly, BSE closed 277 points up for the day while Satyam ended 6.33% up at Rs 476.20 per share.
At Rs 394 crore, Satyam Computers’ fourth-quarter net profit rose 16.7% sequentially and 36% on a year-on-year basis working to Rs 5.98 per share or 36% more than what it had returned to shareholders for the same quarter last year. Revenue from software services at Rs 1779 crore for the quarter was up 35.4% Y-o-Y and 7.1% sequentially.
Revenue at Rs 6,485 crore in fiscal 2006 was up 35.5% and net profit at Rs 1,405 core was up 43.1% over the previous year, working out to an EPS of Rs 21.45, up 40.6% over the previous year.
Fears, if any, of an impending US slowdown were put to rest by Satyam chairman B Ramalinga Raju who said the company continued to see a strong demand in the market and average realised price increases of 2-3% from customers. Despite forecast of a 100 basis points drop, the company maintained to limit it to a 60 basis fall at 23.1% during the quarter despite the appreciation of the rupee, higher wages and costs, CFO Srinivas Vadlamani said.
The company expects revenue growth of between 20-22% for fiscal 2008 which will take Satyam within kissing distance of the $2 billion mark. EPS for the full year is expected to be between Rs 25.32 and Rs 25.73. Ebitda margins are expected to be flattish during the current year in which we have provided for a 2% appreciation in the rupee, he added.
The high point for the quarter has been that Satyam has successfully addressed the attrition issue, reducing employee exits to 13% on an annualised basis, a far cry from the highs of 21% plus that the company had seen in the past, Ram Mynampati, president and member of the board, said.
Satyam will add between 14,000 and 15,000 new associates in the current fiscal of whom 45% will be at the entry level, T Hari, director and vice-president, HR, said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}