Hyderabad, India-based Satyam, which ranks as India’s fourth largest exporter of software and services, saw its net profit decrease 2% to INR 116.7 crore ($24.2m) on revenue that increased 17% to INR 521.5 crore ($108.1m). Revenue from software and services of INR 522.2 crore ($108.8m) however fell short of the company’s guidance of between INR 525 crore ($109.4m) and INR 540 crore ($112.5m), although this part of the business still grew 20% on the previous year.
During the quarter Satyam won contracts with 24 new customers, including six Fortune 500 firms, which brings its total number to 76, and the company also continued to hire, adding 351 new staff during the quarter. Commenting on the results chairman B.Ramalinga Raju said: Some of our expectations relating to ramp up of revenue from specific customers and the fruition of a large deal, did not come through, and the company blamed increased investments in marketing and pressure on fees for the lower than expected earnings per share.
However the company also revised upwards its projections for the full year ending March 31 2003 to growth of between 12% and 12.6% to between INR 2010 crore ($418.8m) and INR 2020 crore ($420.8m), compared to its previous guidance of between $353.5m to $361.6m.
Source: Computerwire
