Satyam FY 05-06 revenues cross $1 billion; weak guidance for FY06-07

22 April 2006

Satyam Computer Services, the last of the frontline technology companies to announce results, came out with numbers, which met market expectations. However, the company has given a conservative guidance for the current year which is much below the guidance from other frontline companies.

The one for one bonus announcement could not ease the disappointment from lower guidance and the stock gave up 7 per cent in today's trade.

During the year 2005-06, Satyam crossed the $1 billion mark in revenues. Satyam is the fourth Indian IT services company after TCS, Infosys and Wipro to cross $1 billion in revenues.

For the quarter ended 31 March 2006, Satyam has reported a consolidated net profit of Rs284.65 or Rs8.45 per equity share - an increase of 38.07 per cent as compared to Rs206.16 crore or Rs6.32 per share for the same quarter of previous year.

Consolidated revenues for the quarter rose 34.08 per cent to Rs1,342.51 crore from Rs1,001.29 crore for the fourth quarter of previous year.

EBITDA for the quarter, excluding other income, increased 40.38 per cent to Rs334.49 crore from Rs238.27 crore for the previous year quarter. EBITDA margins improved nearly 100 basis points to 25.46 per cent of operating revenues from 24.53 per cent.