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Satyam earns $2b in revenue

B. Ramalinga Raju

HYDERABAD: Satyam Computer Services crossed $2 billion in revenues in just two years, while it took 14 years for it to cross the first milestone of billion-dollar mark.

Consolidated revenue of the company was pegged at Rs. 8,473.49 crore ($2.138 billion), while the net profit was Rs. 1,687.89 crore. It posted a robust revenue growth of 30.7 per cent and a net profit of 20.2 per cent (Indian GAAP) in 2007-08 over the previous fiscal, said B. Ramalinga Raju, Chairman, announcing the annual results. Earning per share (EPS) grew by 17.7 per cent at Rs. 25.24.

The company proposed a final dividend of 125 per cent, taking the total dividend for 2007-08 to 175 per cent, including the 50 per cent interim dividend. The total dividend for 2006-07 was 175.

Considering the slowdown in the U.S. and the fluctuations in the realms of banking, financial services and insurance (BFSI), the company cautiously perched its business outlook for 2008-09 at a conservative 24-26 per cent to Rs. 10,500-10,670 crore.

The company acquired the market research and customer analysis (MR&CA) wing of Caterpillar Inc., world’s largest construction and mining equipment manufacturer, for $60 million. Eventually, it would launch a business unit to provide MR&CA solutions globally to Caterpillar and its other customers in various industries.

Mr. Raju said it also acquired the Belgium-based S&V Management Consultants, a supply-chain management consulting firm, for $35.5 million.

Besides, it acquired the remaining 50 per cent stake owned by Computer Associates in a joint venture formed in 2001 for $1.5 million. It was also in pursuit of 18 major deals ($50-100 million-plus range) this year.

He said the company’s gross headcount went up by 18,000 in the last fiscal, while it proposed to add over 14,000 employees this year.

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