Satyam Q1 net up 7%, below forecast

Satyam Q1 net up 7%, below forecast
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First Published: Mon, Jul 23 2007. 02 54 PM IST
Updated: Mon, Jul 23 2007. 02 54 PM IST
Bangalore: Satyam Computer Services Ltd, India’s fourth-largest software exporter, reported a 7% rise in quarterly profit on Friday, below forecasts as a stronger rupee hurt margins.
New York-listed Satyam which specialises in business software, said consolidated net profit for for the fiscal quarter ended June rose to Rs 378 crore ($94 million) up from Rs 354 crore a year earlier.
A Reuters poll had forecast a mean net profit of Rs 3.89 billion for Satyam, whose leading customers include General Electric and Qantas Airways Ltd.
Satyam reported its results after bigger rivals Tata Consultancy Services Ltd. and Infosys Technologies Ltd. beat expectations. Third-ranked Wipro Ltd. had missed forecasts.
Software firms have been winning large outsourcing deals but a stronger rupee , which has risen more than 9.5% against the dollar this year, poses a problem as the companies get about 60% of their revenue from the United States.
Shares in Satyam, based in the southern city of Hyderabad, fell 0.6% in the June quarter, in line with a decline in the sector index, but lagging a 12% gain in the main Mumbai index.
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First Published: Mon, Jul 23 2007. 02 54 PM IST