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Satyam Q1 net up 141 pc

Our Bureau

HYDERABAD, July 11

SATYAM Computer Services Ltd has recorded a net profit of Rs 121.46 crore and a total income of Rs 421.02 crore during the first quarter, reflecting an increase of 141.13 per cent and 74.9 per cent over the corresponding period of the previous year.

The company had recorded total income of Rs 240.72 crore and a net profit of Rs 50.37 crore for the corresponding quarter last year and total income of Rs 1,241.67 crore and a net profit of Rs 316.16 crore for the financial year ended March 31, 2001.

The EPS increased to Rs 3.91 for on par value of Rs 2 per share on an enhanced equity base following the ADS issue.

The Chairman of Satyam Computer, Mr B. Ramalinga Raju, said, ``the company continues to be cautiously optimistic about its growth prospects for the financial year in view of the challenges and opportunities put forth by the prevailing situation in our ma jor market.''

The board of directors, which met here on Tuesday, while taking on record its performance, announced that the company had pre-paid Rs 146 crore to financial institutions and others, thereby reducing the debt burden.

The good performance of the company comes as a surprise in the backdrop of a general slowdown and depressed sentiment in the IT sector. During the quarter, Satyam had achieved a major milestone by listing on the New York Stock Exchange and completing a s uccessful ADS issue.

Satyam expects income from software services for the financial year 2002 to increase by about 40 per cent year-on-year. The operating margin for the year is expected to be in the range of 34-35 per cent and the EPS is projected at about Rs 14.75 and Rs 1 5.25.

For the quarter ended September 31, 2001, the Satyam board maintained that the income from software services was expected to increase by about three per cent over the preceding quarter with the operating margin being in the range of 34-35 per cent.

Satyam had offered through NYSE, 16.7 million ADS which received an overwhelming response from institutional and retail investors with the company raising $161.9 million from the issue.