Satyam Results Strong; Company Exceeds Billion-Dollar Mark

 
 
By Stan Gibson  |  Posted 2006-04-21 Email Print this article Print
 
 
 
 
 
 
 

The fourth-largest Indian outsourcer posts a strong quarter; its yearly revenue reaches $1.1 billion.

Satyam Computer Systems joined the club of billion-dollar companies, as the Indian outsourcing firm posted strong results for its fourth quarter and its fiscal year, which ended March 31. Satyam, headquartered in Hyderabad, India, recorded $1.1 billion for the year and earned profit of $249 million, a growth rate of 37 percent over the previous year. The companys quarterly revenue was $300.7 million, up 35 percent year-to-year. The performance exceeded the companys guidance to analysts.
The results compared favorably with those of Indian outsourcing peers Infosys, Tata Consultancy Services and Wipro.
Ram Mynampati, president of Satyam, said in an interview the significant increases were due to more efficient operations. "We are delivering more work from India… and we have brought more fresh college graduates into the company," he said. Click here to read more about Indian education.
He said the quality of new graduates from Indian institutions is higher than it was a few years ago, reflecting improvements in the Indian educational system. He added that Satyam has also trimmed administrative costs. "Its nothing but focusing on basics," Mynampati said. He cited a gain of 22 new customers and key contract signings with Nissan and General Motors as key customer wins for the quarter. In addition, Satyam gained 3,079 workers during the quarter. Looking ahead, Mynampati foresaw only 4 percent growth for the companys first quarter, but said annual growth for the 2006-2007 fiscal year would be between 25 percent and 27 percent. Satyams business process outsourcing subsidiary Nipuna closed the year with $20 million in revenue. The 3-year-old unit broke even for the quarter and is expected to do $36 million of business in fiscal 2006-2007. Check out eWEEK.coms for the latest news, reviews and analysis on IT management from CIOInsight.com.
 
 
 
 
Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.
 
 
 
 
 
 
 

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