Indian Outsourcer Satyam Computer Services, which is recovering after a scandal company, said that revenues and net profits grew in the third quarter that ended on 31 December.
The company, which was once the fourth largest outsourcer India, is far from reaching the levels of its competitors, such as the Tata Consultancy Services, Infosys Technologies and Wipro revenues and profits. All three companies reported strong growth in revenues and profits during the quarter ended 31 December, enjoying a revival of the market of outsourcing.
Satyam said Monday that revenues had grown up to 12.8 billion rupees ($ 281 million) by approximately 3 percent compared to the previous quarter, while net income was more than doubled to 590 million rupees from 233 million rupees in the prior quarter. The results are in accordance with the Indian accounting standards.
The company now is stable at the level $ 1 billion to $ 1.1 billion in revenue, and there's more, an exodus of customers said regarding apt and main analyst Sudin, and CEO of Offshore insights, research and consulting firm in Pune, India.
Satyam has also started concentrating on selected markets, but these efforts have not yet translated into strong growth of revenues and profits for the company, although the outsourcing market is bouncing back, he added.
A comparison with the figures for revenue and profits of the company in the same quarter the previous year is not available, because it has been exempted from Company Law Board of India from the publication of financial results for the quarters ended December 31, 2008 to March 31, 2010.
Operating margins of society are still very thin, to less than 4 percent, said regarding apt and. Going from current levels of revenue, the company shows a drop in revenue of around 8% in its fiscal year ending March 31, 2011, he added.
Satyam immersed in a financial crisis in 2009 on an accounting scandal that had been inflated revenues and profits for several years. Now, Satyam plans to merge with another Indian outsourcers, Tech Mahindra, who acquired a 43% stake in Satyam dominant in 2009 as part of a stimulus package for the company. The minority shareholders have asked that the merger shall be postponed until complete recovery of the company, and when equity valuations are reasonable.
The company reported in November last year that it had returned to profit in the quarter that ended on 30 June and 30 September.
The company is still sellata with a lot of contingent liabilities and costs, including a complaint from some 37 companies who say that they want to be reimbursed 12 billion rupees they presumably had advanced Satyam.
The company faces a class action suit in the United States alleging infringement of U.S. federal securities laws. After failed to publish its results according to the U.S. accounting rules within a prescribed time, the company delisted last year by the New York Stock Exchange.
Its profits during the quarter were reduced from 533 million rupees in extraordinary restructuring related costs, forensics and litigation support and erosion in the value of the goods in subsidiaries.
However, these are the risks that were already taken into account before and are not likely to affect the operations of the company or customer trust, said regarding apt and.
The company added 764 staff in quarter taking the total of 28,832 at the end of the quarter. The company had 217 customers at the end of the quarter.
John Ribeiro covers outsourcing and General technology breaking news from India to the IDG News Service. Follow John on Twitter at @ Johnribeiro. E-mail address of John john_ribeiro@idg.com
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