Satyam posts 118% rise in net, declares 18% interim dividend

NetScribes/Ganesh Ramamoorthy

Satyam Computer on Tuesday evening beat market expectations by announcing a 117.76 per cent growth in its bottomline for the second quarter of FY 2001. It has recorded a net profit of Rs 669.43 million for the quarter ending September 30, 2000, compared to Rs 307.41 million in Q2 2000. Analysts had earlier projected a 100-105 per cent year-on-year growth for the quarter.

Satyam board has announced an interim dividend of Rs 0.36 per share, which works out to 18 per cent on a share of Rs 2. During the quarter, the company had announced a 1:5 stock split.

Total income for the quarter has risen 80.24 per cent to Rs 2.84 billion, against Rs 1.57 billion during the previous corresponding quarter. Revenues from software exports grew by 71.1 per cent to Rs 2.64 billion during the quarter from Rs 1.54 billion in the previous corresponding quarter. Income from domestic sales grew by a whopping 244.03 per cent to Rs 83.23 million during the quarter, as against Rs 24.19 million during the same period last year.

Aided by fluctuations in the Indian currency, Satyam's other income for the quarter has grown by a whopping 1,513.14 per cent from Rs 7.08 million during Q2 2000 to Rs 114.36 million. Realised and unrealised gains due to currency fluctuations stood at Rs 94.07 million as on September 30, 2000.

The company has increased its provision for taxation during the quarter to Rs 71.15 million, up from Rs 15 million during the same period last year. Reserves, excluding the revaluation reserves, have also risen by 157.74 per cent to Rs 5.75 billion from Rs 2.23 billion during Q2 2000.

Satyam's total staff strength increased by 1,339 to 7,408 during the quarter as against 5,709 as on June 30, 2000, resulting in an increase in staff costs.

Prior to the announcement of the results, the Satyam scrip declined at both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Opening from the previous close of Rs 489.30 on the BSE, the scrip rose to a high of Rs 494.95 in early trade only to, dragged down to a low of Rs 468.10 in afternoon trades on the back of selling pressure . The scrip closed at Rs 468.70 - a loss of Rs 20.60.

The scrip witnessed a similar fall on the NSE. Opening at Rs 490.20, against the previous close of Rs 488.30, the scrip dipped to a low of Rs 466.85 before closing at Rs 467.20.

The counter clocked huge volumes of 11.3 million shares on the BSE and 13.15 million shares on the NSE.

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