Satyam Q1 net profit at Rs 121.49 crore

Hyderabad-based IT major Satyam Computer Services Ltd has posted a net profit of Rs 121.49 crore (Rs 1.214 billion) for the quarter ended June 30, 2003 as compared to Rs 115.79 crore (Rs 1.15 billion) during the last quarter ended March 2003.

Satyam's Q1 2002 profit was Rs 108.44 crore (Rs 1.084 billion).

The results were better than what the market had expected. The stock was up nearly 4 per cent at Rs 182 on the Bombay Stock Exchange at 1000 hours. Earlier, the Satyam scrip move up 4 per cent on the New York Stock Exchange to $9.30.

Total income of the company increased from Rs 471.48 crore (Rs 4.714 billion) in the first quarter 2002 to Rs 570.35 crore (Rs 5.703 billion) in the quarter ended June 30, 2003.

This represents a 4.5 per cent quarter-on-quarter increase in profit. The increase in net profit and total income has been to a major extent because of the company bagging outsourcing orders from overseas clients.

Satyam said that for the forthcoming quarter ended September 30, 2003 income from software services is likely to be between Rs 563 crore and Rs 568 crore. Earnings per share for Q2 are expected to be between Rs 3.81 and Rs 3.86.

Satyam said that for the entire financial year 2003-4, it expects revenue from software services to grow by 18 per cent to 20 per cent. This works out to be between Rs 2,281 crore and Rs 2,320 crore, with EPS between Rs 15.65 and Rs 16.00.

The company, in a communication to the Bombay Stock Exchange, has said that some global funds would 'in the next few weeks' be investing up to $20 million in Satyam's business process outsourcing arm, Nipuna Services Ltd.

The company said that Nipuna, Satyam and the investors had singed an agreement in this regard. Nipuna was set up in June 2002 with a $4 million commitment from Satyam. "The company currently has 164 employees serving five
customers," the company said.