Satyam net profit jumps 43 pc in 2006-07
Satyam reports a 43% jump in net profit for 2006-07, confirming robust growth in booming IT exports, reports Venkatesh Ganesh.business Updated: Apr 20, 2007 21:45 IST
Satyam Computer Services reported a handsome 43 per cent jump in consolidated net profit for 2006-07 on Friday, confirming robust growth in the booming software exporter on surging volumes of business and headcount much in demand. But a strong rupee muted its guidance for the new fiscal year.
Hyderabad-based Satyam, which is the fourth largest software exporter in the country, echoed the performance of the top three, TCS, Infosys and Wipro.
Its total income in the latest quarter rose 37.8 per cent to Rs.. 1,850 crore compared with a year ago, while net profit rose 38.3 per cent to Rs. 394 crore. For the full year, total income was Rs. 6668 crore, up 35.8 per cent, while net profit was Rs. 1,405 crore, up 43.1 per cent.
“We continue to win the confidence of our prominent customers resulting in opportunities of significant size and criticality. Our recent win of a US$ 200 mn deal from Applied Materials in Q4 based on a managed services model is illustrative of this trend,” Chairman Ramalinga Raju said in a statement.
“We continue to see a strong demand in the market and are well-positioned to address that demand,” he added.
Satyam said it looked forward to a revenue growth rate of 28 per cent to 30 per cent in fiscal 2008 as per US accounting principles, with an anticipated record revenue of $ 1.9 billion.
However, the strong rupee is pinching Satyam, eroding export profits. After factoring in a rupee appreciation of 6 per cent, revenue growth guidance under Indian accounting rules works out to only 20 to 22 per cent.