Satyam's Q4 net profit jumps 66 percent on outsourcing boom

Friday, 23 April 2004, 07:00 Hrs
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NEW DELHI: Satyam Computer Services Ltd., one of India's leading software firms, said Thursday its net profit in the January-March quarter jumped 66 percent compared to the same period last year on increased outsourcing.

The company's profit in this period of the current fiscal year 2003-04 touched 1.34 billion, up from 807 million last fiscal in the same period, said a company statement.

Total income of the Hyderabad-based company , India's fourth largest software exporter, registered a growth of 28 percent to 7.3 billion, up from 5.7 billion logged in the same period of the fiscal year 2002-03.

"Our focus on competency enhancement and relationship management has been a key factor in growing existing accounts as well as acquiring new customers," said B. Ramalinga Raju, chairman of Satyam Computer Services.

"The current customer base, including 101 Fortune Global 500 customers, is indicative of the potential for our growth momentum," he said in a statement.

"We shall continue to invest in sharpening our skills and processes for partnering with them in their journey towards business excellence."

Satyam, which is listed on the Indian bourses and the New York Stock Exchange, added 30 customers during the quarter including eight from the Fortune Global 500 list.

The total customer additions during the year were 108, including 20 Fortune Global 500 Companies, said the company.

During the January-March quarterly period, the company added 1,685 employees, which is the highest quarterly addition by the company in its history.

For the fiscal year ended March 31, 2004, the company's revenues stood at 25.41 billion, representing a rise of 32 percent over the previous year.

On the earnings outlook for the current fiscal year, it said its income from software services was likely to post a growth of between 28 and 30 percent to between 30.97 billion and 31.46 billion.

The revenue forecast for the quarter ending June 30 indicates a growth in the range of 4.5 percent to five percent and is expected to be between 7.28 billion and 7.32 billion.

"Backlash against offshore outsourcing, while posing a risk, has not impacted our business so far in any significant measure," said Raju.

"It is noteworthy that we have had an increased number of customer visits and ongoing high level customer interactions during the quarter.

"It is also encouraging to note that most of the recent reports from US industry associations and economic analysts have been favourable to outsourcing and are against legislative interference in global trade in services," Raju added.

Nipuna, the business process outsourcing (BPO) arm of Satyam Computer, reported a revenue of $2.38 million in fiscal year 2003-04 on the back of increased customer demand for back office services.

Satyam said Nipuna's revenue was likely to increase to $12 million in the current fiscal year ending March 31, 2005.

Source: IANS
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