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Satyam Q4 net up

Special Correspondent

Issues revenue guidance of 26-28 p.c. growth for current year


It expects to add a little over 5,000 associates this year also (last year addition 5132).



STRATEGIC BUY: (From left): The CFO, Srinivas Vadlamani, the Chairman, B. Ramalinga Raju, the President, Commercial and Healthcare of Satyam Computers, Ram Mynampati, and the Founder and Executive Director, CitiSoft, Jonathan Clarks, at a press conference in Hyderabad on Thursday. — Photo: Arunangsu Roy

HYDERABAD: Riding on the back of strong financial performance for 2005, Satyam Computer Services has issued a guidance of 26-28 per cent revenue growth for 2005-06, with the assertion that it was `gearing up for continued growth', and that the positive trend of global sourcing model continues.

For the year ended March 2005, it has reported a 36.3 per cent growth in revenues to Rs. 3,464 crores from Rs. 2,541 crores and 35 per cent growth in net profit to Rs. 750 crores from Rs. 555 crores. For the fourth quarter, revenues were up 32 per cent at Rs. 953 crores against Rs. 720 crores and the net profit 51 per cent at Rs. 213 crores against Rs. 140 crores, under Indian GAAP.

Consolidated revenues, including subsidiaries, were Rs. 3,520 crores against Rs. 2,560 crores for the full year, and net profit Rs. 711 crores (Rs. 513 crores) after adjusting for Rs. 9 crores loss in an associate company.

The board declared final dividend of 150 per cent, taking the total dividend for the year to 250 per cent.

Acquires Citisoft

Simultaneously, it announced the acquisition of Citisoft, a business and systems consultants firm focused on `investment management' industry. The consideration for acquisition consists of guaranteed payment of $23.2 million payable over a three-year period and an additional performance based payment of $15.5 million, to be paid again over a three-year period.

Announcing the details at a press conference here on Thursday, B. Ramalinga Raju, Chairman, said no significant changes were seen in the global sourcing trends, and the "environment is very vibrant, as it has been for sometime (last six quarters)." It expects to add a little over 5,000 associates this year also (last year addition 5132).

The revenue guidance of Rs. 4,502 crores for 2005-06, factors the revenues from Citisoft, and is expected to take it into the billion dollar club. The latter expects a revenue of $16 million for the year ending April 2005.

Mr. Raju said the company also de-risked operations by bringing down dependence on North America from 85 per cent of revenues to 68 per cent, while increasing revenues from Europe to 18 per cent (6 per cent). Its Chinese operations would play an important part in its strategy in Asia. The guidance for Nipuna (subsidiary) is $18 million ($10 million).

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