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Satyam's revenue up 38 p.c.

Special Correspondent

Revises guidance upwards, acquires Singapore firm

HYDERABAD: Satyam Computer Services has registered a total revenue of Rs. 1058 crore and a net profit of Rs. 190.19 crore during the first quarter of the current financial year ended June 30, 2005. The revenue is 35.7 per cent higher than Rs. 81 crore registered during the corresponding period last year. The profit went up by 16.1 per cent compared toh Rs. 163.74 crore. Earnings per share have risen from Rs. 5.17 to Rs. 5.95.

With the encouraging results during the first quarter, the company has revised its revenue guidance upwards and it is expected to be in the range of Rs. 4,536 crore-Rs. 4,569 crore. The EPS for the fiscal is expected to be between Rs. 27.22 and Rs. 27.44 implying a growth of 21.5-22.5 per cent.

Announcing the first quarter results at a press conference here on Thursday, the founder and chairman, B. Ramalinga Raju, said the enterprise business solution wing of the company continued to anchor the growth. The company was planning to add 4,000-5,000 people to its existing strength of over 22,000, of which more than 1,300 were added in the first quarter alone. The capital expenditure which stood at around Rs. 50 crore in the first quarter was expected to be between Rs. 175 crore and Rs. 200 crore by the end of the fiscal.

He also announced the acquisition of the Singapore-based Knowledge Dynamics Pte Ltd, a high-end consulting solutions provider in business intelligence with significant presence in the ASEAN region. The announcement follows the company's acquisition of CitySoft in the first quarter. It would accelerate the company's aspirations for leadership in emerging competencies such as business intelligence and analytics.

The acquisition was strategically important, as customers were no longer asking for services in a tactical sense. Business intelligence was expected to grow at 40 per cent every year and there was huge market for the competency in North America and other areas. Mergers and acquisitions, Mr. Raju said, were part of the continuous inorganic strategies, but the company was cautious about the identification and selection of the right choice.

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