Satyam posts 39% YoY revenue growth in Q2

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.

Key Business Achievements

Satyam added 35 customers, including a leading airline, a Korean auto major and a European confectionary giant. The number of Fortune 500 customers increased by one.

Satyam has been awarded a project for an end-to-end implementation of a Customer Care & Billing Solution for one of the largest domestic telecom service providers in the fixed line and mobile space, across multiple cities.

Satyam has won a large order to implement a comprehensive Core Banking System, hosting a Data Center and Disaster Recovery Center, Networking and Facility Management, for a large Indian commercial bank. This is one of the leading system integration engagements that Satyam will perform on such a large scale.

Satyam has been engaged by a global automotive giant for the transition and support of PeopleSoft application at multiple facilities in the US, Canada and Mexico for a period of five years.

A global top 3 pharmaceutical company has selected Satyam to implement iDecisionsTM, Satyam’s Business Intelligence (BI) framework. This implementation is expected to deliver significant cost benefits as well as other benefits including speed-to-market, compliance and improved decision-making.

Satyam and Microsoft have launched two state-of-the-art Business Intelligence (BI) facilities in Singapore and Shanghai. The two sites will be centers of excellence, where researchers will use real-life scenarios and data to test, develop, and implement innovative solutions for the Financial Services sector. These labs will also enable Satyam and Microsoft to study customers’ requirements more quickly to ensure faster and more cost-effective implementation of BI solutions.

Citisoft, a Satyam subsidiary, is working with the offshore operations centre of an Anglo-American asset manager, in helping them set up an Hedge Fund administration environment. Citisoft will be helping the investment management arm of a major Pan-European bank assurance company in defining its strategy for investing in and supporting OTC Derivatives. Satyam added 4025 associates in the quarter, taking the total employee strength to 31659. Total resources, including those of subsidiaries and joint ventures, increased to 34908.

Nipuna Highlights

Nipuna, Satyam’s BPO subsidiary, recorded revenue of Rs.41.6 crore (US$8.99 mn.) in Q2 2007. Nipuna’s revenue guidance for fiscal 2007 stands at Rs.162 crore (US$36 mn.) Nipuna added 441 employees this quarter, taking its resource strength to 2446 associates. During the second quarter, Nipuna added two new customers, including one of the world’s leading telecom carriers. Nipuna is now handling 60 processes for 29 customers in engineering, healthcare, insurance, artwork management, IT helpdesk, finance and accounts animation, customer support, KPO and data management areas. A new delivery facility, setup in Hyderabad in this quarter, has increased the number Nipuna’s onsite and offshore facilities to five - three in Hyderabad, one each in Bangalore and Chennai.

Source : Equity Bulls

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