Satyam Computer Q2 profit down 12%, profit at Rs 118 crore
By Our Convergence Bureau | 23 Oct 2002
Hyderabad: Satyam Computer Services’ July-September 2002 net profit fell by 11.9 per cent from a year earlier amid intense pricing pressure for software services.
Satyam,
India’s fourth largest software services exporter,
reported a profit of Rs 118 crore ($24 million), or Rs
3.75 per diluted share - down from Rs 134 crore a year
earlier, or 4.24 per share. The total income rose 11.2
per cent to Rs 505 crore.
The board of directors of Satyam has declared an interim dividend of 40 per cent for the financial year ended 31 March 2003. Satyam, which serves more than 250 clients and counts General Electric as its No 1 customer, has been relying on volume-led growth in a weak market, but compared to its peers it has been hit harder as its customers press for lower rates.
Satyam’s shares closed 3.67 per cent lower at Rs 215.15 on 22 October 2002 against a 1.57-per cent fall in Bombay’s infotech index. Its shares have fallen nearly 4 per cent in the past three months against a 9-per cent rally in the infotech index.