Satyam reports healthy forecasts

By siliconindia staff writer   |   Thursday, 20 October 2005, 07:00 Hrs
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BANGALORE: IndiaÂ’s fourth biggest software service exporter, Satyam Computer Services Ltd. today reported a 34 percent rise in quarterly net profit.

The Hyderabad-based company, listed in Mumbai and New York Stock Exchange, also revised up earnings guidance for the year to March 2006 after an overnight board meeting in Budapest.

Revenue from software services stood at $ 268 million, up by 8.86 percent sequentially and 41.78 percent compared to the same quarter last year. Net Profit, achieved at $ 52 million indicates a growth of 38.43 percent YoY.

Satyam, whose leading customers include General Electric, said two recent acquisitions were expected to drive increased activity in the second half of the fiscal year, while the overall demand environment was robust.

Satyam ranks after Tata Consultancy, Infosys and Wipro in the rankings of India's $17.2 billion export industry.

Satyam added 1,977 Associates in the quarter, taking the total employee strength to 22,482. The total manpower, including subsidiaries and joint ventures increased to 24,798.

Satyam's continued focus on Europe as potential growth market is validated by the 14.4 percent sequential growth rate.

Speaking on the announcement of the Q2 results, B. Ramalinga Raju, Satyam's Founder & Chairman said," It was yet another quarter of high single digit, broad based growth continuing the consistent performance witnessed over the last several quarters. This was the first quarter where we achieved annualized revenue run rate of a billion dollars. We continue to experience increased momentum in the market and believe that the demand for business solutions using the global delivery model is robust."

Commenting on the integration of the acquisitions made earlier this year, Raju, said, "We have been making steady progress in integrating the consulting practice of Citisoft and Knowledge Dynamics with Satyam. Many of our customers have expressed keen interest in our integrated solution offering resulting in significant increase in the pipeline of opportunities that we are pursuing."

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