Mumbai: Software major Satyam Computer Services reported a consolidated net profit of Rs547.70 crore for the quarter ended June 2008, a growth of 44.77% over the corresponding period last year.
“The company had a net profit of Rs378.32 crore in the first quarter of FY08,” Satyam said in a filing to the Bombay Stock Exchange.
The total income rose to Rs2,653.95 crore, from Rs1,893.39 crore in the same quarter in FY08.
“During the first quarter of FY09, Satyam achieved an annual revenue run rate of Rs10,000 crore. In Q1, we grew by 8.5%,” Satyam Chairman B Ramalinga Raju said.
The results were broadly in line with market expectations.
“The results in rupee terms look good. However, in dollar terms, the reported growth is disappointing. Also, the company has not changed its dollar guidance, which is another worrying factor,” said Rajiv Mehta, research analyst, India Infoline.
On a standalone basis, Q1 net profit of Rs575.91 crore registered a 48% growth over the previous year. The firm had a net profit of Rs389.14 crore in the June quarter of FY08.
The total income rose to Rs 2,556.52 crore in the latest quarter, from Rs 1,820.93 crore in the year-ago period.
“We were able to deliver this performance on the back of three per cent volume growth, helped, in part, by rupee depreciation,” Raju added.
The road ahead
Against the backdrop of a better margin performance and prevailing forex rates, the company has revised its guidance for FY09.
“Consolidated revenue is expected to grow between 32-34.1%,” Raju said.
During the June quarter, the company witnessed increased business activity in Asia Pacific and Middle East.
“Companies in Europe that were slow to embrace offshoring are showing increasing interest to capitalise on our global delivery model. These regions continue to promise significant growth going forward,” he added.
Shares of the company were trading at Rs417, up by 0.40% on the BSE. “One can buy the stock with a trading perspective for a horizon of one-three months,” Mehta added.
(with PTI inputs)