Satyam Computer Services Ltd., India’s fourth-largest software exporter, said fourth-quarter profit climbed 38%, beating analysts’ estimates, as it won more orders from larger customers.
Net income rose to Rs3.94 billion ($94 million) or Rs5.83 a share in the three months ended 31 March, from Rs2.85 billion or Rs4.23 a share a year ago, the Hyderabad-based company said in a statement. That exceeded the Rs3.54 billion median estimate of 11 analysts surveyed by Bloomberg News.
Sales rose 35% to Rs17.8 billion from Rs13.1 billion a year ago under Indian accounting rules, matching the Rs17.6 billion analysts had expected.
“The earnings are way above our expectations,” said Dipesh N Mehta, an analyst at Khandwala Securities Ltd. in Mumbai. “The company seems to have made some good forex gains.” Mehta has a “buy” rating on the stock.
Satyam Computer shares rose Rs21.4, or 4.8%, to Rs469.25 at 10:40 a.m. local time on the Bombay Stock Exchange. The stock has fallen 2.9% this year, compared with a 0.1% increase in the benchmark Sensitive index.
Satyam on 19 January forecast fourth-quarter sales of as much as Rs17.4 billion, and earnings per-share of Rs5.42.
The company said other income rose to Rs704 million against Rs289 million a year ago. Staff costs rose to Rs10.76 billion from Rs7.5 billion.
The company added 1,265 new employees in the fourth quarter during which attrition rate fell to 15.7% from 17.6% in the third quarter. Satyam said full-year group profit rose to Rs14.05 billion from Rs11.42 billion.
Satyam said it added 138 new customers in the year ended March 2007. Of these, customers with orders worth $10 million and more rose to 35 from 27 a year earlier.