Financial Daily from THE HINDU group of publications
Friday, Oct 21, 2005


Group Sites

Home Page - Software
Info-Tech - Mergers & Acquisitions

Satyam: More deals likely on better visibility, presence in Europe

Our Bureau

Hyderabad , Oct. 20

Satyam Computer Services Ltd indicated the possibility of deals in the $100-500 million range, given the success of its outsourcing model and increased visibility and presence in Europe.

The Chairman, Mr. B. Ramalinga Raju, said this was because corporations preferred more of $100-500 million deals to those over $1 billion. .

The company officials said that during the second quarter Satyam Computer added about 1,977 associates. The company now expects to induct 5,000-5,500 more against 4,500 estimated earlier.

Referring to Nipuna, its BPO subsidiary, Mr Raju said that the company recorded Rs 18.20 crore in revenues and posted net loss of Rs 10.63 crore in Q2. However, this represents a sequential growth of 25 per cent and the company expects an overall growth of 80 per cent this year while achieving cash break even later this year.

Stable billing rates

The President of Satyam , Mr Ram Mynampati, said overall the billing rates had been stable both for onsite and offshore work. However, new deals meant upward revision of prices. Increased client visits augured well for the overall business sentiment.

The Chief Financial Officer of Satyam, Mr Vadlamani Srinivas, said "the company margins for the quarter expanded by 119 basis points compared to the previous quarter due to increasing offshore and higher utilisation levels in IT services business. The strong performance on margin led to 24 per cent sequential growth in the EPS."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Tata Safari Dicor

Stories in this Section
Fresh cyclonic circulation over Bay by weekend

DD to telecast Sri Lanka, S. Africa series
Zee not eligible: BCCI
Sugar industry sees extended party time — Almost 50 pc rise in production likely
`Rate hike on the cards'
Satyam closer to $1-b mark — Q2 net up 34 pc; revises outlook upwards
Satyam: More deals likely on better visibility, presence in Europe
Markets retreat from day's high but later recover from low levels
FDI in telecom: Foreign holdings in PSBs, FIs not part of 74 pc cap
TCS buys Australian firm for Rs 117 cr
Bangalore infrastructure issues — Narayana Murthy quits as BIAL Chairman

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line