Pricing Will Remain A Concern For Satyam

Despite its spectacular performance over the years, sentiment at the Satyam Computer Services counter has often suffered owing to the investments it has made in loss-making subsidiaries, Satyam Infoway (Sify) and VisionCompass. But in the recent past, the management seems to have made all the right moves. To begin with, it has put a cap on fresh investments in its subsidiaries. It has also merged the loss-making subsidiaries and acquired the software services business of Sify. This is seen as a precursor to a proposed stake sale to a strategic partner.

B Ramalinga Raju, chairman, Satyam Computer Services, discussed the company's recent performance and its outlook.

 

Q: How do you explain the sharp decline in operating margins during the fourth quarter of the last fiscal? Do you expect margins to improve in the current fiscal?

The drop in operating margins was largely due to the merger of loss- making marketing subsidiaries and the acquisition of Sify