Satyam Computer identifies new areas for growth

By Our Staff Reporter

HYDERABAD, JULY, 1. A stronger focus on key vertical markets, a foray into emerging areas of technology, and hitherto unexplored market for IT services are part of Satyam Computer's efforts to stay in the forefront of the business. It has also identified new areas where its ability to innovate and its technical strengths will lead to success, according to Mr. B. Ramalinga Raju, Chairman.

Speaking at the 14th annual general meeting here on Friday, he said worldwide software industry continued to be one of the most exciting field. The technology led recession was an obvious challenge.

The changing market offers opportunities and challenges. The downturn in the U.S. resulted, in some cases, in delays in implementation schedules and deferral of projects. However it increased the enthusiasm for offshore work, which presented a potential business opportunity for the company, he said while surveying the global scene.

There were instances where `time to market' criteria was being replaced by alternative approaches such as `return on investments (ROI)' to evaluate IT projects. The company sees this as one more challenge to meet, with innovative ideas that could be converted into possible business opportunity, he said.

The company which recorded a robust growth of revenues by 83 per cent to Rs. 1242 crores and a 134 per cent growth in net profit to Rs. 316 crores for March 2001, had declared an interim dividend of 18 per cent and a final dividend of 22 per cent (total 40 per cent).

This performance can be fairly construed as recognition of the company's efforts to stay at the forefront of technology and management practices. ``It also places us in a position to be cautiously optimistic about the future'', he said.

Replying to questions from the shareholders, Mr. Raju said the company was only one year behind Infosys in operational efficiencies, though the latter was 10 years older to Satyam.

The AGM was held on the day Mr. Ramalinga Raju's father Mr. B. Satyanarayana Raju (who passed away on June 27) was cremated. Several shareholders proposed to cut short the AGM, in view of the cremation later in the day. However, Mr. Ramalinga Raju, and his brother Mr. B. Rama Raju (Managing Director of Satyam Computer) preferred to go ahead with the agenda which included the approval of another term to Mr. Srinivasa Raju as director.

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