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Satyam posts Rs. 181 cr profit in Dec quarter

HYDERABAD: Satyam Computer Services, in a disclosure of information to the Bombay Stock Exchange on Tuesday, reported a net profit of Rs. 181 crore for the quarter ended December 31, 2008.

Total income during the period was Rs. 2,206 crore with exports contributing a lion’s share of Rs. 2,194 crore. The company posted an income of Rs. 681 crore during January this year and Rs. 676 crore in February with a net profit of Rs. 4 crore and Rs. 52 crore, respectively in the two months.

For the first time after the domestic IT giant ran into controversies following the disclosure by its chairman B. Ramalinga Raju, the company released information pertaining to its performance to select bidders including its acquirer Venturbay Consultants Pvt Ltd and Person Acting in Concert, Tech Mahindra Limited. The disclosure of certain non-public information was to facilitate price discovery as the “publicly available information about the company was tainted,” according to information available with the Bombay Stock Exchange.

The company reported a bank balance of Rs. 373 crore against an outstanding balance of Rs. 469 crore in addition to Rs. 169-crore corporate guarantee from BNP Paribas for Satyam BPO. The company lost 23 customers accounting for $70 million business during the quarter ended December 31, 2008, and 19 customers accounting for $22 million withdrew business while 24 others withdrew purchase orders valued at $91 million, spread over the next 12 months. It had, however, received new business orders from 215 mostly existing customers with contract values totalling to $380 million. The company had an undrawn loan of Rs. 316 crore and outstanding forward/options contracts of about $164 million with marked-to-market losses estimated at Rs. 110 crore. The company claimed that the information was not audited and there could be no assurance that any such information was accurate. “The actual results may be materially higher or lower than projected”. The company said, in its filing, that the information was prepared with data collected using the internal management information system and the estimations, assumptions and approximations used were the best efforts of the management.

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