Financial Daily from THE HINDU group of publications
Saturday, Apr 22, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 22, 2006 |
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Info-Tech - Bonus Announcements Corporate Results - Software Satyam Q4 net rises 38 pc at Rs 284.65 cr; sets 1:1 bonus Our Bureau
New highway Given the business environment and potential to secure larger deals, the next target is $2-billion. For onsite staff, pay hike would be 6 per cent and for offshore it would be 16 per cent.
TALKING POINT: Mr B. Ramalinga Raju, Founder and Chairman, Satyam Computer Services, addressing a press meet in Hyderabad on Friday, along with Mr Ram Mynampati, President, and Mr V. Srinivas, Chief Financial Officer. — K. Gajendran
Hyderabad , April 21 Posting an all-round growth, Satyam Computers Ltd joined IT majors Infosys, TCS and Wipro in the billionnaire league, logging software revenues of Rs 4,793 crore and net profit of 981.9 crore for the financial year 2005-06. The growth of 36.12 per cent in revenue and 38 per cent in net over fiscal 2004-05 also put the Hyderabad-based IT major amongst the fastest to cross the $1-billion mark during the year. The company announced a bonus share of 1:1 (subject to shareholders' nod) and a final dividend of 250 per cent (total for the year 350 per cent). During the fourth quarter ended March 31, 2006, the company's software revenues stood at Rs 1,314 crore and net profit atRs 284.65 crore, reflecting a growth of 35.21 per cent in revenue and 38 per cent on net profit over the corresponding quarter last year. For the year 2005-06, if other income is considered, Satyam's total revenues touch Rs 5,012 crore with a net profit of Rs 1,239 crore. The company is now sitting on a cash pile of Rs 4,268.75 crore (close to $1 billion). Announcing the results at a press conference, the Founder Chairman of Satyam, Mr B. Ramalinga Raju, said "it is with a sense of great pride and joy that I report Satyam's entry into the billion-dollar club. Achieving this significant landmark has been made possible by the support received from our customers and investors and the hard work of our associates."
To target $2 b
"Given the business environment and potential to secure larger deals, which have become the order of the day, we could soon hit the $2-billion mark in revenues," he said, answering queries. In the fourth quarter, Satyam has made its presence felt in large deals by securing long-term contracts from a leading global auto major and in aerospace. The integrated solution offerings, coupled with Satyam's global programme management capability, will make the company a stronger contender in garnering a higher share of such larger deals, he said. Given the market pointers and business pipeline, Satyam has come up with a revenue guidance of Rs 6,000-6,100 crore for the financial year 2006-2007, a growth of 25.2 per cent to 27.3 per cent that could potentially witness EPS of Rs 36-Rs 36.6.
SALARY HIKE
Mr Raju said: "Our business projection was not conservative but based on analysis of what the company potential holds. To some extent, the profitability of the company would be impacted due to the hike in salaries." For those onsite, the hike would be 6 per cent and offshore employees it would be 16 per cent. The company has announced a restricted stock option scheme. This, along with the salary hike, would bring down the attrition rate from about 18-19 per cent to about 12 per cent. The company shares witnessed volatile trading, closing lower at Rs 810.20 at the NSE as against the previous close of Rs 871.35, hitting a high of Rs 917.80.
Related Stories: More Stories on : Financial Performance | Bonus Announcements | Software | Satyam Computer Services Ltd
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