Six Satyam Arms Post Rs 298 Crore Losses

Six overseas subsidiaries of Satyam Computer Services, promoted by B Ramalinga Raju, reported an aggregate net loss of Rs 298.44 crore during the financial year ended March 2001.

The companies would have reported higher losses, thanks to other income of Rs 47.11 crore. In 1999-2000, these companies had posted net loss worth Rs 82.67 crore.

Gross revenue touched Rs 217.39 crore (Rs 69.69 crore). Income from domestic operations accounted for 59.9 per cent of gross revenue, while exports contributed 40.1 per cent.

Satyam Infoway topped the list of loss-making subsidiaries, with its net loss ballooning to Rs 220.68 crore (Rs 28.25 crore). Vison Compass ranked second with a jump in net loss to Rs 64.52 crore (Rs 46.40 crore).

The huge losses of the subsidiaries eclipsed the otherwise good financial results of Satyam Computer. During 2000-01, Saytam Computer reported a 134.4 per cent rise in net profit to Rs 316.16 crore, excluding extraordinary profits of Rs 170.13 crore from the sale of investments.

Though the brand value of Satyam Computer improved significantly in recent times, the widespread losses posted by the subsidiaries took a toll on the share price of the company. The share price dipped to Rs 233.90 on March 31, 2001, from Rs 885.74 in March 31, 2000.

While the brand value of the company increased almost 50 per cent from Rs 1,517 crore in 1999-2000 to Rs 2,275 crore in 2000-01, its market value declined 73 per cent from Rs 24,906 crore in March 2000 to Rs 6,577 crore on March 31, 2001.

Satyam Infoway fundings depreciate

The high profile investments made by Satyam Infoway in various dotcom ventures have inevitably bombed.

The Rs 501.48 crore investment in India World Communication has now depreciated to Rs 399.64 crore, while its Rs 168.25 crore investment in cricket site Cricinfo Ltd depreciated Rs 20.13 crore to Rs 148.12 crore by the end of March 2001, the company has reported in its annual report.

India World Communications has reported service income of Rs 6.00 crore, with a net loss of Rs 0.32 crore during the year ended March 2001.