Satyam attrition rate at 19%; expects revenues of Rs 6,290 by Mar'07

New Delhi, July 21 (UNI) Satyam Computer Services today said it is expecting revenues worth Rs 6,290 crore by March 2007 -- an increase of 31 per cent, -- even as it is battling a 19 per cent attrition rate.

''Our attrition rate for the last few quarters has been hovering around 18-19 per cent, reflecting a favourable market and demand environment, besides our ability to leverage strength in the market,'' Satyam President Ram Mynampatti told UNI.

As against Satyam's attrition rate, Tata Consultancy Services had recently reported an attrition rate of 10.6 per cent for the 12 months ending June 30, 2006.

The company is expecting a better revenue guidance of Rs 1,512-Rs 1,529 crore in the Q2 ending September 30, 2006, as against Rs 1,443 crore in this quarter.

Its revenues for the first quarter last year were to the tune of Rs 1,314 crore.

The company reported a 75 per cent increase in its net profit at Rs 360 crore for the first quarter ending June 30, 2006 as against Rs 206 crore in the corresponding period last year.

The increase in the net profit can be attributed to a better all round topline growth as well as favourite forex fluctuations and exchange rate, Mr Mynampatti said.

The market expectation for the topline revenue groth was 4 per cent but the company has beaten the market expectation with a 9.8 per cent growth.

Speaking about expansion plans in terms of setting up new technology centers, Mr Mynampatti said, ''Enterprise solutions continue to be our strength as they contribute 40 per cent to our revenues.

We are in the process of developing some alliances and partnerships with a Knowledge Process Outsourcing (KPO) company and a service provider but at present we cannot divulge much.

He also expressed willingness to work with the Indian government, particulary in the rural areas and is currently in the process of evaluating the required growth and other factors to quick start the initiative,'' Mr Mynampatti said.

The company presently has technology centers in Latin America, China, Singapore, Malaysia, Hungary, Australia and looking at setting up more centers across the globe.

''We are in the process of negotiations and cannot give any details at this stage,'' Mr Mynampatti said.

UNI RA CS DS1430