Satyam Q2 net profit up 42%

Riding on the gains of a sharply depreciating rupee against the dollar, India’s fourth largest IT services provider Satyam Computer Services reported a net profit (consolidated Indian GAAP) of Rs 580.85 crore for the second quarter ended September 30, 2008, compared with Rs 409.09 crore in the corresponding quarter last year – up 41.99 per cent year-on-year and 6.05 per cent sequentially.

Total income grew 38.76 per cent to Rs 2,819.29 crore as against Rs 2,031.72 crore YoY– and registered a sequential growth of 7.57 per cent.

The company estimates its full year revenues to be between Rs 11,273 crore and Rs 11,475 crore with an annual growth of 33-35.4 per cent.

“The better-than-guidance performance came on the back of a 4 per cent volume growth and the rupee depreciation against the dollar,” said B Ramalinga Raju, founder and chairman of Satyam Computer.

The company, however, revised its annual US GAAP revenue guidance downwards to $2.55 billion from $2.59 billion (between 19 per cent and 21 per cent from the earlier 26 per cent).

“The US GAAP revenues for the second quarter stood at $652.2 million. The dollar guidance for the next two quarters are expected to remain at the Q2 levels,” said Srinivas Vadlamani, chief financial officer of the company.