Satyam Reports 29% Gain in ThirdQuarter Profit (Update1)
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Jan. 21 (Bloomberg) — Satyam Computer Services Ltd.,
Indias fourth-largest software exporter, reported third-quarter
profit gained 29 percent as higher billing rates countered the
stronger rupee.
Net income for the three months ended Dec. 31 increased to
4.34 billion rupees ($110 million), or 6.33 rupees a share, from
3.37 billion rupees, or 5 rupees, a year earlier, Hyderabad-based
Satyam said in a statement today. The profit matched the 4.35
billion rupee estimate by 15 analysts polled by Bloomberg. Sales
rose 32 percent to 22 billion rupees.
Satyam is raising billing rates for managing computer
networks and call centers as it seeks to boost earnings that have
been eroded by the rupees biggest gain in more than three
decades. The company is the worst performer on Indias benchmark
index this year on concern that profit growth will be further
curbed by a slowdown in the U.S., its biggest market.
Satyam fell 3.1 percent to 361 rupees at 10:02 a.m. on the
Bombay Stock Exchange. The stock had declined 17 percent this
year before today, compared with a 5.9 percent fall in the
Sensitive Index.
The company in October forecast sales of as much as 21.1
billion rupees for the third quarter.
Satyam raised its sales-growth forecast for the year ending
March 31 to as much as 29.2 percent under Indian accounting rules,
from an October prediction of 26.7 percent.
Earnings per share will climb about 19 percent to 25.50
rupees, Satyam said today. Thats higher than its October
forecast of 25.10 rupees.
Satyam also agreed to buy Chicago-based Bridge Strategy
Group for $35 million. The firm employs 36 management consultants
and generates $17 million in annual sales, Satyam said today.
To contact the reporters on this story:
Harichandan Arakali in Mumbai at
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