Business Daily from THE HINDU group of publications
Saturday, Jul 22, 2006
Business Daily from THE HINDU group of publications Saturday, Jul 22, 2006 |
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The company operates out of 55 countries, which Mr Raju said was amongst the highest within the IT service providers, in terms of presence and reach
THE CHAIRMAN of Satyam Computer, Mr B. Ramalinga Raju (left), the President, Mr Ram Mynampati (middle), and the Chief Financial Officer, Mr V. Srinivas, addressing a press conference to announce its first quarter results in Hyderabad on Friday. K. Gajendran
Hyderabad , July 21 Satyam Computer Services Ltd continues to scout for strategic acquisitions and is in the process of expanding its operations in Latin America and Eastern Europe. The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said: "Since there is preference for near shore centres in some cases and to strike an appropriate balance for outsourcing, we may expand into new geographies, while consolidating existing centres." The company operates out of 55 countries, which Mr Raju said was among the highest within the IT service providers, in terms of presence and reach. Apart from that, within India, the focus is on expanding to tier-II cities and soon the Visakhapatnam centre would be operational.
ATTRITION ISSUE
Addressing newspersons, Mr Raju said that the company's compensation package was on par with other industry players. For about two, three quarters, the focus was on higher profitability and the company might not have given that much importance to compensation packages. But, lately, this has been addressed and the employees have received higher compensation. This has also cut down the overall attrition rate by about 1.5 per cent last quarter. The increase in salaries could mean four per cent impact on the revenues. The wage inflation meant an increase of salaries by about six per cent for onsite staff and 18 per cent for offshore resources. During the first quarter, the company added 1,123 associates taking the total headcount to about 27,634. Including subsidiaries and joint ventures, the employee strength increased to 29,843. During the fiscal, the company expects to add about 12,000 people. The Chief Financial Officer of Satyam, Mr V. Srinivas, said: "A better than guided revenue growth and a favourable exchange rate environment have resulted in a 24 per cent growth in EPS. The superior performance and better cash management have generated a surplus cash of Rs 315 crore during the quarter."
RESERVES swell
The company's reserves havenow swelled to Rs 4,668 crore, breaching the magical $1-billion mark. The President of Satyam, Mr Ram Mynampati, said that the company had made clear inroads into the enterprise services market and has been rated high. Continuing the focus on this area, the thrust would be on providing consultancy services and enterprise solutions. While Europe contributed about 17.59 per cent of the company's revenues, the Asia Pacific accounted for 15-16 per cent and North America for 65.91 per cent.
More Stories on : Outlook | Software | Satyam Computer Services Ltd
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