Satyam Q3 net increases 25%

After Infosys and Wipro it is the turn of India’s fourth largest software
company, Satyam, to report higherthan-expected profits. Satyam Computer Services
reported an increase of 25% in net profit taking it to Rs 146 crore in the
quarter ended December 31, 2003. The company closed Q3 at Rs 662.7 crore in
revenue. As a result of strong volume growth and stabilizing billing rates, the
company has raised its revenue growth estimate for FY 04 to 31% from the earlier
26% to 28% in dollar terms. However, Satyam is treading with caution, informed
Satyam chairman B Ramalinga Raju. "The new customer acquisition has been at
marginally higher than the current average prices," said Raju. Satyam added
29 new customers during the quarter. According to Raju, 75% of the new customer
wins in Q3 has come in competition with large Indian firms and global majors.

"With operations in 45 countries Satyam is gearing up to accelerate organic growth and is considering inorganic growth as well" B Ramalinga Raju, chairman, Satyam

He said that the number of customer visits has doubled in comparison with the
corresponding quarter in the last financial year. He classified more and more
customers coming over and considering India as the positive result of
outsourcing backlash. With operations in 45 countries Satyam is gearing up to
accelerate the organic growth and is considering inorganic growth as well.
"Specific opportunities for acquisition-oriented growth are under
evaluation," said Raju, without divulging further details.

The company is seriously considering expanding its global footprint to
Eastern Europe. With an addition of 1,087 associates Satyam recorded highest
quarterly increase in the manpower in the last three years. This takes the
manpower additions in FY03 to 2,500. "In Q4 we will add 600-800
associates," added Raju.

CyberMedia News Service