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Satyam Ups Q2 Profit

HYDERABAD, India -- Satyam announced its audited results for the quarter ended September 30, 2006 (Q2 2007). Here is a summary.

Indian GAAP Consolidated

Revenue from software services stood at Rs.1601.88 crore, up 11.02% sequentially and 38.69%, compared to the same quarter last year. The revenue was significantly higher than the guidance of Rs.1521 crore to Rs.1529 crore. The revenue guidance for the current year is revised upwards and is expected to be in the range of Rs.6452 crore and Rs.6476 crore. The corresponding annual growth rate is expected to be 34.6% - 35.1%. The earlier forecast for annual revenue was Rs.6190 crore to Rs.6290 crore.

Net Profit, at Rs.322.34 crore, indicates a YoY growth of 28.57%. EPS for the quarter at Rs.4.89 shows a YoY growth of 32.52%. EPS guidance for the year is revised upwards to Rs.20.73 to Rs.20.81, from the earlier estimates of Rs.19.45 to Rs.19.75.

US GAAP

Revenue from software services stood at US$352.0 mn., up 9.1% sequentially and 31.4% compared to the same quarter last year. Net Profit, at US$65.5 mn., here indicates a growth of 26.9% YoY.

B. Ramalinga Raju, Founder & Chairman – Satyam, on the results “The revenue and earnings per share for Q2 have exceeded the forecasted range on the back of strong volume growth of 9.5%. Q2 witnessed accelerated growth in select verticals such as TIMES, Healthcare and Retail in addition to inline growth in staple verticals. Increase in the contribution of consulting and enterprise business solutions to 40.4% of revenue is a result of our sustained investments and favorable reviews from industry analysts about the maturity of our services in this space.”

Srinivas Vadlamani, Chief Financial Officer – Satyam, on the results “Q2 continued to witness the benefits of operational efficiency which helped us to mitigate the impact of salary hikes on margins. In addition, subsidiaries, for the first time, contributed positively to the margin. While this is along expected lines, it gives us greater confidence to manage margins for fiscal 2007.”

Satyam Computer Services Ltd. (NYSE: SAY)

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