Satyam Results Strong; Company Exceeds Billion-Dollar Mark
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.
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.
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