Satyam earns revenue of Rs 1830 crore in Q1

Hyderabad, July 20: Satyam computers, a leading global consulting and IT service company, has earned revenue of Rs 1,830 crore, an increase of 26.8 percent and a sequential increase of 2.9 percent, for the first quarter of the financial year 2007-08.

While announcing the results of the company for the quarter ended June 30, this year, Satyam Computers Founder and Chairman B Ramalinga Raju said the company's net profit after tax was Rs 378 crore, an increase of 6.8 percent.

He said the company, which was entering into the 20th year of its inception, proposed to add 15,000 to 16,000 associates this year to the present 38,386 associates. He said the number of associates, including the subsidiaries and joint ventures, stood at 42,347.

He said it was a strong first quarter performance and a good beginning to financial year 2008, a year when Satyam's total income would exceed the USD 2 billion mark.

Mr Raju said strong volume growth and increased revenue productivity along with operational efficiencies helped their company mitigate margin challenges posed by an unprecedented seven percent rupee appreciation during the quarter.

Regarding the business outlook, he said for fiscal 2008, under US GAAP revenue was expected to be between USD 1.9 billion and USD 1.98 billion implying a growth rate of 34 per cent to 35.5 per cent over fiscal 2007.

He said for Q2 financial year 2008, under US GAAP the revenue was expected to be between USD 477.2 million and USD 479.4 million, implying a growth rate of 5.5 per cent to 6 per cent. Under the Indian GAAP for the same period, the corresponding revenue growth rate was expected to be between 4.7 percent and 5.2 percent.

Regarding business achievements, he said the company added 29 new customers in the quarter, including two US Fortune 500 corporations.

He said some of the prominent customer additions were a leading US chemical manufacturer, one of the world's largest manufacturer of fiberglass and related products and Australia's largest transportation company.

Mr Ramalinga Raju said, ''other first quarter highlights included revenue growth across all verticals and similar achievements in our service offerings and regions. Engineering services and infrastructure management services grew by 14 percent and 36 percent respectively, validating significant investments in these areas over the past several years.'' He said Satyam was working to provide high-end design, computer-aided engineering, analysis, product lifecycle management, and other services for the world's leading business, special-mission, and trainer aircraft manufacturer.

He said Satyam bagged a prestigious infrastructure management contract with a global FMCG company for Managed Data Center support services for their Data Centers in the US, and Europe.

Mr Raju said Satyam ranked number one amongst Indian IT companies and number three globally out of 1,455 outsourcing vendors in 77 countries in a survey conducted by Brown-Wilson Group Inc.

Satyam Chief Financial Officer Srinivas Vadlamani said the company's focus on maximising customer value by delivering integrated business solutions and by partnering with them in their business transformation has resulted in stronger relationships.

He said Satyam led one of the India's largest retail Bank's foray into internet banking by successfully rolling out an internet banking solution. Currently over 3,500 branches were internet banking enabled, providing a seamless internet front end to a variety of backend banking.

He said the Satyam Nipuna Services Limited posted a revenue of USD 11.93 million for Q1 2007-08 and the revenue guidance for fiscal 2008 was USD 61 million.

He said Nipuna had won two strategic deals in the research and consulting space towards guiding the strategic department of large oil and gas exploration company to formulate a merger, acquisition and divestment department function and to conduct supplier research across IT services for its procurement department.

He said Nipuna was awarded the 'best Established Indian ITeS company' by the Hyderabad Software Exporters Association this year.

UNI