Satyam Computer Q2 earnings Up 42 Revises FY09 Guidance

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.

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Satyam Computer Q2 earnings Up 42 Revises FY09 Guidance