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Satyam Comp Q2 net falls 12%

Satyam Computer Services Ltd said on Wednesday its July-September net profit fell a less-than expected 11.9 per cent from a year earlier amid intense pricing pressure for software services.

Satyam, India's fourth-largest software services exporter, reported a profit of Rs 118 crore (Rs 1.18 billion), or Rs 3.75 per diluted share, down from Rs 134 crore (Rs 1.34 billion) a year earlier or Rs 4.24 per share.

Total income rose 11.2 per cent to Rs 505 crore (Rs 5.05 billion).

A Reuters poll had forecast profit at Rs 114 crore (Rs 1.14 billion), hit by a drop in the rates for software services and a fall in non-operating income. Net sales were estimated at Rs 483 crore (Rs 4.83 billion) on the back of volume-led growth.

Satyam which serves more than 250 clients and counts General Electric as its No 1 customer, has been relying on volume-led growth in a weak market but compared to its peers, it has been hit harder as its customers press for lower rates.

Satyam's shares closed 3.67 per cent lower at Rs 215.15 on Tuesday against a 1.57 per cent fall in Bombay's infotech index. Its shares have fallen nearly four per cent in the past three months against a nine per cent rally in the infotech index.

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