Notwithstanding the wage inflation and the recession in the US markets, Satyam Computer Services Ltd has reported a 30.7% growth in consolidated revenue to register Rs 8,473.49 crore for FY08 as against FY07. According to Indian GAAP, the company has reported a net profit of Rs 1,687.89 crore, a growth of 20.2% over FY07.
The company board has proposed a total dividend of 175% for fiscal ?08, including an interim dividend of 50% (Rs 3.50 per share on each of the share of Rs 2 par value). For the fourth quarter ended March 2008, the company has reported a revenue of Rs 2,416.02 crore, a growth of 35.8% over the corresponding period in 2007.
It has posted a net profit of Rs 466.85 crore, a growth of 18.6% over the same period in 2007. It has posted its audited results for FY08 in accordance with the International Financial Reporting Standards (IFRS), a principle-based globally accepted standard, thus making it as one of the first Indian companies to do so. Satyam did not see much negative impact from the US recession and hopes to close 12-15 deals in FY08 with the deal size varying between $50-$100 million.
According to B Ramalinga Raju, chairman and founder, Satyam, the company would continue to monitor some of the major markets where lagging economic conditions hindered customer spending in select sectors. Fuelling its growth, the company is planning to have an employee strength of 15,000 by March 2009 and increase wages from 12% to 14%.
The annualised quarterly attrition has continued on its downward trend, dropping to 11.5% in the fourth quarter.
“We are reducing our dependency on the US market to focus more on Europe, the Asia Pacific region as these markets are expected to grow more faster than the US market,? he explained. “Though there was a drop in the value of the dollar to about 11%, we understood the market and developed risk-mitigation strategies. The net effect of the slowdown is bound to throw up opportunities,?? he added.
As per its outlook and guidance for FY09, the Indian GAAP consolidated revenue is expected to be in the order of Rs 10,500 crore and Rs 10,670 crore, thus implying a growth rate of 24% and 26% over FY08. The earnings-per-share (EPS) for the full year is expected to be between Rs 29.54 and Rs 30.04, implying a growth rate of 17% – 19%. For the first quarter of FY2009, the consolidated revenues are expected to be between Rs 2,500 crore and Rs 2,512 crore implying a growth rate of 3.5%-4%. The EPS is expected to be between Rs 7.64 and Rs 7.68 implying a growth rate of 9.7% to 10.2%.
