Satyam Computer Services
The 43.2 per cent revenue growth (yo-y) of Satyam Computers in the first quarter of FY09 was helped by the rupee’s depreciation. Last quarter, the company had maintained its dollar guidance for revenues at $2.65-2.69 billion for FY09. But the guidance in rupees was up 6.5 per cent at Rs 111.81-113.63 billion on account of the rupee’s depreciation to Rs 42.88 from Rs 40. The rupee EPS guidance was also upped marginally to Rs 32.35 from Rs 30.04, for the same reason. But in the last quarter the rupee dropped to Rs 48 against the dollar and this should have a positive impact on Satyam’s margins in
FY09. On October 6, Aberdeen Asset
Management acquired 12,00,000
shares of Satyam, increasing its holding in the company to 9.17 per cent. Satyam has reiterated that it will stick to its recruitment plans to hire 15,000 people this year, although this may be postponed slightly and the remuneration packages may be lower. The risk though, is that most of Satyam’s guidance for FY09 was based on back-loaded growth projections in 2008. The depreciation of the euro and pound and the slowdown in spending may jeopardize the outlook.
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