Satyam Computer registers Q2 net profit of Rs 147.59 crore

Hyderabad: The total income of Satyam Computer Services (Sify) for the second quarter (under Indian GAAP) increased to Rs 636.08 crore, up from Rs 570.35 crore, reflecting a rise of 25.94 per cent increase (yoy).

Software revenues for the period stood at Rs 598.49 crore, as against Rs 499.13 crore in the corresponding quarter of the previous year. This has significantly surpassed the guidance of Rs 563 crore to Rs 568 crore issued at the end of the first quarter of the current fiscal year.

The net profit at Rs 147.59 crore shows a 24.12-per cent increase over Q2 of the previous year. This includes a profit of Rs 13.87 crore from the sale of a 3-per cent stake in Sify. The income from software services in Q3 is anticipated to be between Rs 620 crore and Rs 630 crore and earnings per share (EPS) is expected to be between Rs 4.05 and Rs 4.15.

The annual guidance for income from software services has once again been revised upwards to 26 per cent to 28 per cent in US dollar terms, from 18 per cent to 20 per cent indicated at the end of the first quarter. This translates into expected software revenues between Rs 2,416 crore and Rs 2,454 crore as against Rs 2,281 crore to Rs 2,320 crore forecast at the end of Q1. The revised outlook is based on an exchange rate of Rs 45.30/US$.

In order to achieve the expected growth and prepare for the coming year, the net employee addition in the current year is expected to be around 3,000, as against 1,500 people indicated earlier. The company added 27 new customers in the second quarter, including five Fortune 500 companies.

For the six months ended 30 September 2003, Satyam recorded a total income of Rs 1,206.43 crore and a net profit of Rs 269.08 crore. The board of directors has declared an interim dividend of Rs 1.20 per share.