"Asia Pacific revenues grew faster than other markets, bringing down our dependence on limited geographies. Besides, companies in Europe that were slow to embrace off-shoring are showing increasing interest to capitalise on our global delivery model," he said here on Friday.
Satyam recorded a net profit of Rs 547.70 crore for the quarter, as compared with Rs 378.32 crore in the corresponding quarter last year. Its revenues stood at Rs 2,620.8 crore, as against Rs 1,830 crore, a year-on-year growth of 43.2 per cent and a sequential increase of 8.5 per cent. During the first quarter of FY09, the company's annual revenue run rate exceeded Rs 10,000 crore.
The company is yet to see clear and consistent signals emanating from the banking, financial services and insurance (BSFI) sector, which continues to be fluid. Moreover, the US economy has been impacted by high energy costs and rising inflation. This impacts sectors such as retail and transportation, Raju said.
The BSFI sector did not grow as expected, contributing 21.38 per cent to Satyam's Q1 revenues, as compared with 23.75 per cent in the comparable quarter. However, TIMES (telecom, infrastructure, media, entertainment and semiconductor), retail, transportation and logistics were the major contributors, accounting for 21.90 per cent and 10.46 per cent respectively during the quarter ended June 30, 2008.
Raju said the company had incurred an animation business loss with a US-based client pulling out its contract, which led to lower-than-expected growth. "We expect to bag similar deals and come back in the second quarter and thereafter," he added.
Besides, the company had suffered a forex loss of Rs 36 crore on hedge contracts. "We had decided to hedge 50 per cent of our expected dollar flow. That has held us in good state in the past and will continue to do so in future as well," Raju said.
During Q1, the company bagged three large deals worth between $40 million and $50 million (Rs 160 crore and Rs 200 crore) each. It is pursuing 20 large deals that are between $40 million and $100 million across various industry segments and geographies, which it expects to wrap up during the current financial year, said Satyam president Ram Mynampati.
"We are targeting small boutique companies engaged in niche areas like BPO, infrastructure management and engineering for acquisition. Each deal will be in the range of $40 million to $50 million," Srinivas Vadlamani, chief financial officer of Satyam, said while declining to reveal further details.
Satyam expects its Q2 revenues to be between Rs 2,743 and Rs 2,769 crore, implying a growth of 4.7 per cent and 5.7 per cent. For the full year, its revenues are expected to be between Rs 11,181 crore and Rs 11,363 crore, an increase of 32 per cent and 34.1 per cent respectively.
