Friday, India's business and information technology services major Satyam Computer Services Ltd. reported higher profit for the second-quarter influenced by volume growth and depreciating rupee against U.S. dollar.
The company has also provided earnings and revenue guidance for the third-quarter while revising its outlook for fiscal 2009.
Consolidated Results
The Hyderabad-based company reported second-quarter consolidated net profit of Rs.580.85 crores, higher than Rs.409.09 crores last year, registering a year-over-year growth of 42%.
During the quarter, income from Information Technology Services grew 40% to Rs.2,785.50 crores from Rs.1,985.90 crores in the corresponding quarter last year, while revenue from BPO declined 9% to Rs.55.62 crores from Rs.60.89 crores in the prior year quarter.
Competition
The Bangalore-based Infosys reported second-quarter consolidated net profit of Rs.1,432 crores, compared to Rs.1,100 crores in the second-quarter of 2007, representing a year-over-year growth of 30%.
Among geographical areas, the Americas region contributed 62% to total revenue, while contribution from Europe was 21% and Rest of World accounted for 17%.
During the quarter, the company acquired the balance 50% equity held by Computer Associates Satyam JV Corporation in its joint venture CA Satyam ASP Pvt. Ltd. for a total consideration of Rs.5.63 crores. With this acquisition, CA Satyam became a wholly owned subsidiary of the company.
Six-Month Results
For the first six months ended September 30, 2007, Satyam's consolidated net profit rose 43% to Rs.1,128.55 crores from Rs.787.41 crores.
Standalone Results
Satyam Computers standalone net profit for the second-quarter was Rs.597.43 crores, up 43% from Rs.417.15 crores in the second-quarter of 2007.
For the six-month period, the company's net profit rose 46% to Rs.1,173.34 crores from Rs.806.29 crores for the comparable period a year-ago.
Outlook
The company anticipates third-quarter earnings per share in the range of Rs.8.39 to Rs.8.65 on revenue of Rs.2,945 crores to Rs.3,034 crores.
For the fiscal year 2009, the company revised upwards its earnings guidance between Rs.33.57 and Rs.34.10 per share from its earlier outlook of Rs.31.83 and Rs.32.35 per share.
The company also raised its yearly revenue outlook to Rs.11,273 crores to Rs.11,475 crores from Rs.11,181 crores to Rs.11,363 crores.
The outlook is based on exchange rate of Rs.47.00 per US dollar.
The company said its board has declared an interim dividend of 50% or Re.1 per equity share of Rs.2 each for the fiscal year 2009. The record date for the dividend will be November 1.
The Chairman, B. Ramalinga Raju, said, "In the light of better-than-guided performance for the fist half and the favourable movement of rupee against the US dollar, we are revising our annual revenue guidance under Indian GAAP upwards."
At the BSE, Satyam Computer shares are presently trading at Rs.268.00, down by Rs.5.05 or 1.85% on volume of 12.73 lakh shares.
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