Satyam Computer Services is an integrated IT solutions provider engaged in application development and maintenance, datamarts, systems integration, conversion and migration, Euro currency and engineering (CAD/CAM/ CAE) services. It is a SEI-CMM Level 5 company, which offers a range of expertise in the areas of information technology, software development services, systems integration, ERP solutions, product development, Internet access and hosting services, electronic commerce and consultancy. Satyam has nearly 8000 IT professionals, who operate from its state-of-the-art software development centres in India, the US, Japan, Singapore and the UK. These centres work as IT partners for over 150 Fortune 500 and multinational clients worldwide.

The financials for the year ended Mar. 2000 are encouraging. The company posted a healthy 78% increase in turnover to Rs 672.81 cr in 1999-2000. Net profit at Rs 139.73 cr, signifying a healthy 92% increase over the previous year. In the latest half year ended Sep. 2000, the company’s turnover was up by 74% to Rs 505.87 cr and net profit before extraordinary income was Rs 117.31 cr, representing a whopping 107% increase over the same period of the previous year!

The extraordinary income of Rs 170.12 cr in the half year ended Sep. 2000 represents the net consideration for sale of 3.47 lakh shares of Satyam Infoway Ltd (SIFY) to the Government of Singapore Investment Corporation (GSIC). Thus, the net profit after extraordinary income zoomed by 449% to Rs 287.43 cr. The company has indicated that it will retire some debt, leading to significant savings in interest cost and improving the bottom line.

The company’s subsidiaries include SIFY, a company listed on Nasdaq, Satyam GE Software Services, Satyam Venture Engineering Services (SVES) and Satyam Manufacturing Technology Inc. The company has sold 1.6% stake in Satyam Infoway to GSIC, where the latter has a put option to offload the shares to the company, if it fails to list SIFY in recognised stock exchanges in India by 30 Sep. 2001.

SIFY clocked a turnover of Rs 65.35 cr, resulting in a loss of Rs 28.25 cr for the year ended Mar. 2000. In the latest half year, its turnover surpassed the previous full year’s turnover and reached Rs 75.69 cr. But its losses also zoomed to Rs 79.32 cr. Despite the losses, the company continues with its strategy of growth through acquisitions.

Satyam Manufacturing Technology Inc, wherein the company holds 76% stake, is a joint venture with the US$ 17-bln TRW Inc of US which holds the rest of the stake. The JV company received a purchase order for US$ 200 mln in Dec. 2000 from TRW Inc. Reportedly, this is the largest single order received by an Indian solutions company. The project is scheduled to be completed before 1 Jun. 2005.

The company has approved an $ 310-mln American Depository Shares (ADS) issue. It intends to enlarge the portfolio of services offered to customers to ensure continuous growth. With several global vendor alliances and end-to-end solution capability, the company is poised for steady growth from implementation of ERP and CRM, and Internet infrastructure product development. n