Financial Daily from THE HINDU group of publications
Thursday, May 30, 2002
Financial Daily from THE HINDU group of publications Thursday, May 30, 2002 |
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Info-Tech
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Software Satyam brand value computed at Rs 3,200 cr Our Bureau
HYDERABAD, May 29 BRAND value of Satyam Computer Services, the Hyderabad-based software solutions provider and the fourth largest Indian IT firm, has been computed to $655.33 million or Rs 3,200 crore. The company, which was established a little over a decade, has seen dramatic transformation. Its brand value, which was just about Rs 139.86 crore in 1997-98, increased to Rs 513 crore in 1998-99 to Rs 2,274 crore in 2000-2001, has leap-frogged to Rs 3,200 crore in 2001-2002. The brand value assessment exercise was based on a host of computation issues wherein profit before tax by non-branded income was taken as profit for brand valuation. Further, previous two years' profits were considered as present value and weightage factor was applied to arrive at weighted profit. Five per cent of average capital employed was provided for non-brand purposes and income tax at current rate provided. Lastly, brand multiple was estimated based on certain parameters and internal evaluation. Satyam's net profit before tax was valued at Rs 1,408 crore along with financial charges of Rs 406.73 crore adding up to Rs 1,815 crore of other non-branded income as on March 31, 2001. This has increased to Rs 3,199 crore in the year 2001-2002. Interestingly, the enterprise value of shares — which is the market value together with the debt outstanding — has moved up from Rs 153 crore in 1996 to Rs 85,450 crore as on 2002. While there are host of models to evaluate human resource accounting, Satyam has used the Lev and Scwartz model for computing the HR value. With the number of associates pegged at 8634 as on March 31, 2002, the HR value has been estimated at Rs 5,842 crore.
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