HYDERABAD: India’s fourth-largest software exporter, Satyam Computer Services on Friday delivered better-thanforecast results for the April-June quarter, but failed to impress the markets, which mauled the company’s stock on fears triggered by weak volume growth and tepid hiring.
Satyam Computer Services also maintained its dollar revenue guidance for the full fiscal and upped by nearly a tenth its revenue expectations in rupees as the Indian currency lost ground against the greenback.
Net profit for the first quarter was up year-on-year by 44.8% to Rs 547.7 crore on a 43.2% increase in revenue to Rs 2,620.8 crore. Satyam had forecast revenue between Rs 2,500 crore and Rs 2,512.5 crore.
Earnings per share, at Rs 8.16, topped the Rs 7.68, the upper end of its guidance, said Satyam. Volume growth was unusually slow at 3%, Satyam’s volume rose by 8.78% during January-March, and the company only added 651 associates in Q1, compared with 1,122 in the previous one.
The Satyam stock fell 7.5% to close at Rs 382.95 on BSE on Friday even as the benchmark Sensex rose by nearly 4%.
“We will be able to deliver our stated guidance notwithstanding the operational environment.
This quarter, we had a loss of animation business in BPOs, which led to a slower-than-expected growth rate. This loss is transient and is limited to Q1,” chairman B Ramalinga Raju said.
As against its previous revenue growth guidance of 23.9-25 .9% for fiscal 2009, the company said the topline would accelerate by 32-34 .1% to Rs 11,181-11 ,363 crore on better margins and favourable exchange rate movements . The guidance has been assuming an exchange rate of Rs 42.88 to a dollar.
Mr Raju said the Hyderabad-based company was looking at opportunities in retail and transportation sectors, where there was greater need for operational efficiency in the near term.
Satyam Computer Services also maintained its dollar revenue guidance for the full fiscal and upped by nearly a tenth its revenue expectations in rupees as the Indian currency lost ground against the greenback.
Net profit for the first quarter was up year-on-year by 44.8% to Rs 547.7 crore on a 43.2% increase in revenue to Rs 2,620.8 crore. Satyam had forecast revenue between Rs 2,500 crore and Rs 2,512.5 crore.
Earnings per share, at Rs 8.16, topped the Rs 7.68, the upper end of its guidance, said Satyam. Volume growth was unusually slow at 3%, Satyam’s volume rose by 8.78% during January-March, and the company only added 651 associates in Q1, compared with 1,122 in the previous one.
The Satyam stock fell 7.5% to close at Rs 382.95 on BSE on Friday even as the benchmark Sensex rose by nearly 4%.
“We will be able to deliver our stated guidance notwithstanding the operational environment.
This quarter, we had a loss of animation business in BPOs, which led to a slower-than-expected growth rate. This loss is transient and is limited to Q1,” chairman B Ramalinga Raju said.
As against its previous revenue growth guidance of 23.9-25 .9% for fiscal 2009, the company said the topline would accelerate by 32-34 .1% to Rs 11,181-11 ,363 crore on better margins and favourable exchange rate movements . The guidance has been assuming an exchange rate of Rs 42.88 to a dollar.
Mr Raju said the Hyderabad-based company was looking at opportunities in retail and transportation sectors, where there was greater need for operational efficiency in the near term.
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