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Hyderabad based Satyam Computer Services, India's fourth largest software services exporter, has reported a quarterly net profit of Rs 115.79 crore for the fourth quarter ended on March 31, 2003, showing a borderline increase of 0.55 percent when compared to Rs 115.15 crore recorded for the same period last year. 

The company has registered a total income of Rs 553 crore for the fourth quarter, showing an increase of 14.70 percent when compared to total income of Rs 482 crore recorded for the same period last. The EPS for Q4 is reported at Rs 3.68 showing a marginal increase when compared to EPS of Rs 3.66 for the corresponding period last year.

Annually, the company has clocked net profit of Rs 459 crore for fiscal 2003, which shows a decrease of 6.17 percent when compared to Rs 490 crore registered during fiscal 2002. On the other hand, the company has crossed the Rs 2,000 crore mark by registering total income of Rs 2,051 crore for the fiscal 2003, which shows an increase of 13.78 percent when compared to Rs 1803 crore registered during fiscal 2002.

"We have done pretty well when compared to our guidelines and I am sure that for the next year similar trend will continue.

The outlook for fiscal 2004 indicates a 15 percent - 17 percent growth in income from software services. The forecast for revenues from software services for fiscal year 2004 is expected to be between Rs 2,278 crore and Rs 2,318 crore. During this year we are going to add between 1500 to 2000 employees to our rolls adding expenses of about Rs 80 crore for the company," said, B Ramalinga Raju, Chairman at Satyam. 

Talking about his future plans, Raju added that the trend towards increasing reliance on offshore providers presents a large opportunity for a mature and visible player like Satyam. "Our strategy to leverage this opportunity has several facets. Firstly, our verticalized organizational design that facilitates engaging with customers, is increasingly based on domain knowledge. Secondly, our proactive and ROI based approach in providing business solutions helps our customers compete better in their respective markets. During the year 2004, we will continue to pursue growth strategies both organic and inorganic vigorously," he explained.

"I am also pleased to inform you that our Associate company Sify Ltd., achieved cash break even for the fourth quarter indicative of the positive outlook going forward," Raju added. With a view to adopting a realistic approach with respect to some of the company's past investments, the company has decided to make a provision to the tune of Rs 152 crore in its books towards diminution of such investments. Within this, the main amount relates to VisionCompass at Rs.126 crore. "Even though VisionCompass turned in a profitable year, based on considerations of size, efforts and focus, we have taken a decision to discontinue the operations of the company. We are not very successful in finding a possible investor for VisionCompass and we don't want to prolong the process now. So from now on VisionCompass will cease to exist and all its products and offerings will be now a part of Satyam. Some of its products will be added to our set of product offerings in Business Intelligence segment," he explained.

He also mentioned that amidst the SARS scare in the Chinese region, the company would continue to carry on with its focus in that region. "The issue of SARS is a temporary on and we have a long term approach when it comes to China. The Chinese market is expanding very rapidly and more importantly, it is going to give us a chance to enter into other regional markets. So we will continue our focus towards that region," Raju added. 

(CNS)