Satyam Computer Services, India’s fourth-largest software services firm, revised its dollar revenue guidance downwards to 19-21% from 24-26% earlier.
Retains rupee guidance at 33-35.4%
HYDERABAD: Satyam Computer Services, India’s fourth-largest software services firm, revised its dollar revenue guidance downwards to 19-21% from 24-26% earlier, after factoring the general slowdown and currency fluctuations. The company expects annual revenues to be between $2.55 billion and $2.59 billion this year.
The earnings per ADS (one ADS is equal to two shares) is expected to be at $1.47 to $1.50. However, the company has decided to maintain the rupee guidance between 33 to 35.4% implying revenues between Rs 11,273 crore and Rs 11.475 crore.
The earnings per share are expected to be between Rs 33.57 and Rs 34.10. “We had originally given a guidance of 26% growth in dollar terms during the beginning of the year. However, we are now discounting about 3% drop due to cross currency fluctuations and another 2% due to our own business going down,” Srinivas Vadlamani, chief financial officer said.
For the third quarter ending December 2008, the company is projecting a growth of 4.4 to 7.6% in revenue and an EPS growth of -2.8 to 0.2% under the Indian GAAP.
However, under the US GAAP, the Q3 guidance is almost flat with a guidance of -2.8 to 0%. The earnings per ADS too would see a negative growth between -10.3 and -7.7%. For the second quarter ended September 2008, the company’s revenue in rupee terms stood at Rs 2,819.29 crore, which is a growth of about 38.76% over Rs 2,031.72 crore in the corresponding period of the previous year.
The company’s net profit for the quarter stood at Rs 580.85 crore, a growth of about 41.99% over the year-before period’s Rs 409.09 crore.
“We have delivered a better-than-guided performance for the second quarter. We achieved this in a challenging global macro-economic environment and amid the volatile currency scenario that became reality in the three months since Satyam last reported earnings,” Satyam chairman B Ramalinga Raju said. The board has also declared an interim dividend of 50%. The TIMES (telecom, infrastructure, media, entertainment and semiconductor) and manufacturing segment continues to be the leading line of business in terms of revenue generation with each of them contributing over 23% to the topline.
Banking, financial services and insurance (BFSI), meanwhile, brought in 20.50% of the revenues. In the second quarter of the previous year, the vertical had contributed about 23.81% to the income.
Incidentally, all the three US financial firms that have been in news — Lehman, AIG and Merrill Lynch — are Satyam’s clients. “There has been an impact as far the first two are concerned,” said Satyam president Ram Mynampati.
k_ramana@dnaindia.net
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