Satyam Computer Services has reported Q2 revenues of $62.48 million as against $36.28 million in the same quarter of last year, an increase of 80%. The net profit after tax increased by 118% to $14.73 million ($7.08m).
The revenues for the first half of the current financial year are $117.21 million (78%; $68.21m). The net profit increased by 107% to $26.21 million ($13.11m) for the six months ended 30 September.
Satyam continues to see strong demand for its IT solutions among key sectors. Repeat business stood at a healthy 82% (70%).
Managing director B.Rama Raju, said: “A key reason for continued growth has been the focus on enlarging the portfolio of services offered. We have added new projects covering datawarehousing and data mining, network security audit, quality consulting, CRM and PDM solutions.
“E-business projects have also grown at a rapid pace. As companies continue to enlarge the scope of applications involving the Internet and the web to cover more areas of their operations, the definition of what comprises e-commerce is undergoing change. With its several global vendor alliances and end-to-end solution capability, Satyam is well established to handle the many opportunities arising out of this e-transformation.Our investment in steadily ramping up enterprise solution capabilities has also started showing results, with increased growth coming from implementation of ERP, CRM and internet infrastructure product deployment.”
Raju added: “At the company level we are implementing a set of initiatives that will help us achieve strategic and operational excellence in the way we conduct our business.This will be implemented at all locations.”
The focus on increasing market reach with newer solutions is also paying off. Thirty-five new clients were added during the quarter, including US Robotics, Healtheon, Alcatel Taiwan, Citibank, Dentsu Kokusai, Overseas Union Bank, and Royal Sun Life Assurance. A significant part of new clientele came from the Middle East, Asia Pacific, Japan, and the UK.
Recent wins in enterprise solutions include two of the largest Oracle implementations in MiddleEast and several new SAP deployment projects in the US. The company has been working on enterprise-wide projects involving deployment of Vignette, Siebel, SAS data warehousing, Oracle CRM, and Exterprise solutions.
Telecom is another area showing rapid growth. Revenues grew more than 60%. Satyam’s telecom group has been working in projects involving eCRM, billing solutions for call centers and WAP services, prepaid solutions, SS7 signalling protocol development, NMS and embedded software. Telecom solutions constituted 9.9% (8.5%) of revenues for the quarter.
Internet and e-commerce applications grew to 27.1% (15.4%). The traditional application development and management business continues to shrink to 48.1% (59%) of revenues. Engineering services share was 8.9% (8.15%). ERP solutions with 6% completed the breakup of revenues for the quarter.
The Quality Circle has been offering software process quality consultancy services to a number of prominent companies in Japan and US. This involves working with client IT organizations to bring them to a higher level of process maturity.
Onsite and offsite together now constitute 47.7% (49.7%) of revenues. As a market, North America continues to dominate with 77.75%, followed by Europe with 7.89%. Rest of the world’s share grew to 12.74% while Japan now comprises 1.62% of revenues.
Pursuant to signing of various agreements with TRW, a joint venture under the name of Satyam Manufacturing Technologies, has been established in USA. The JV is 76% owned by Satyam with TRW holding the balance.
A new India Development Center (IDC) has been established with Mercator, the IT subsidiary of the Emirates Group, Dubai. The IDC is working on Rapid, an airline revenue accounting system, among several other projects for the international airlines industry.
Another recent development is the plan to establish an offsite development center in Melbourne, Australia. The company is entering into two marketing relationships that will spur its growth in this fast growing region. The center will become operational in the third quarter of this financial year.
The total manpower on 30 September stood at 7,048 associates, as against 5,709 on 30 June. The number of technical associates increased by 1,278 to close the quarter at 6,359 (5,081).
The company received the national HRD Award - 2000 for outstanding contributions to HRD. The award was presented in recognition of Satyam’s continuing commitment to its most critical resource - ‘people’, and its outstanding HR practices.
The Satyam Learning Centre (SLC) has entered into a strategic alliance with Exterprise of USA, to set up a global learning centre to provide training and consultancy services in collaborative e-business to professionals from Asia Pacific region and Europe. SLC is also setting up a competency centre in partnership with NCR to provide competency building programs in the area of very large databases.