For the first quarter ended June 2002, Satyam Computer Services Limited has reported a 12 per cent increase in total income at Rs 471.48 crore (Rs 421.02 crore) against a 21 per cent increase in its total costs which stood at Rs 363.04 crore (Rs 299.56 crore), dragging down profits by 11 per cent over the previous corresponding period.
Net sales were up 13 per cent over the previous corresponding period to Rs 463.82 crore (Rs 411.90 crore). Satyam’s operational income growth has been steadily dwindling with the year-on-year growth rates consistently falling. From 76 per cent a year ago the growth in revenues has slipped to the current 13 per cent.
Operating profits were down by 4 per cent over the previous corresponding quarter to Rs 143.28 crore (Rs 148.92 crore). OPM at 31 per cent has been down by 5 percentage points over the previous corresponding period.
Other income was down 16 per cent over the previous corresponding period to Rs 7.67 crore (Rs 9.12 crore) but all the same the company’s conscious debt reduction has seen its interest cost coming down dramatically over the past four quarters and stood at Rs 0.15 crore down from Rs 8.17 crore during the same period last year.
Depreciation was up 37 per cent to Rs 31.46 crore (Rs 22.93 crore). The tax provision having gone up by 99 per cent over last year to Rs 10.90 crore the company reported a net profit of Rs 108.45 crore down 11 per cent over the previous comparable period profit of Rs 121.46 crore.
Sequentially too, Satyam’s performance has been unimpressive. Operational revenues were up by just about 1 per cent over the March quarter income of Rs 457.64 crore. Operating profits managed just a 2 per cent rise over the preceding quarter profit of Rs 140.01 crore, while OPM remained almost flat at 31 per cent.
Other income was also down 69 per cent over the March quarter income of Rs 24.92 crore. The only positive of this quarter were a fall in the interest and depreciation cost which were down 48 per cent and 9 per cent respectively over the March quarter.
Currently trading at around Rs 240, the stock discounts its June quarter annualised EPS of Rs 13.79 by 18 times. With a negative growth in profits and a steadily declining growth rate in topline the stock could further slip to lower levels.