Satyam has announced its third quarter numbers. It has posted consolidated net profit of Rs 433.63 crore versus Rs 409.09 crore and net sales at Rs 2,195.56 crore versus Rs 2,031.72 crore (QoQ).
The company management said that the US customers are engaging fairly well. The company expects to hold on to its growth seen in past quarters.
The company’s maturity and higher product offering would help in bringing more revenues, the management feels. It is not seeing any hit and has a positive outlook from its customers. The company is chasing 20 deals worth USD 15 million each.
The company has seen QoQ margin improvements of 164 bps. It has seen 9.24% volume growth. It is seeing 1.5 times more activity in large deals YoY, the company management said. Satyam is seeing higher engagement from customers for transformational deals, the management added. The company has introduced a tactical change in hedging policy - it has hedged 75% of revenues, it said.
The company has successfully negotiated better rates from some financial services customers, the Satyam management said.
Satyam’s management including Ramalinga Raju, Founder & Chairman, Ram Mynampati, President, CHB and Srinivas Vadlamani, CFO spoke to CNBC-TV18 in an exclusive interview.
Excerpts from CNBC-TV18's exclusive interview with the management:
Q: First on US – what is your sense of what the CIOs are saying for 2008 in terms of Budget?
Raju: Our customers are looking at engaging with us fairly well and we are expecting that we should be able to hold on to the growth that we have seen and that is the basis on which we have given strong guidance for the current quarter. So in that sense, from a customer’s perspective, the traction is good.
We are cognisant of the fact that there are concerns about sub-prime; there are issues around dollar weakening etc. But overall these were some of the better times that we have ever witnessed.
Q: At this early stage in 2008 are you getting any early signs that there could be delays, tightening of budgets, any kind of pricing inflexibility that you may witness going into 2008?
Raju: In stray cases by and large, the pricing environment and general volume growth commitments are fairly good. In about 85% instances, we have been able to either conclude and understand for the coming year or the CIOs are fairly clear as to what their budget sizes would be and what their engagement with us would be.
In 10%-15% of the cases there may have been some slight delays, but from a customer perspective things are going well. We are aware of the fact that we are winning more and more large deals so in that sense even if there were to be a slowdown, one would expect that there are opportunities that may come the way. Because off-shoring is being seen as a strategic engagement today Now we are about 50,000 people therefore we have the requisite size, we have the breadth of portfolio of services and the fact that we have acquired a company this quarter for addressing strategic issues is going to further strengthen our ability to address solutions for the customers in a more holistic sense.
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