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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."

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