Hyderabad, April 24: In line with the slowdown in the technology sector, IT major Satyam Computer Services has reported a fourth-quarter loss of Rs 35.91 crore, after writing off its investment in a subsidiary, and projected a modest growth of 15 to 17 per cent for this fiscal.
The company’s net profit dipped 6 per cent to touch Rs 459.8 crore during 2002-03 as against Rs 490.1 crore in the previous fiscal.
However, an annual revenue growth of 16.84 per cent was achieved despite “challenging economic and geopolitical environment”, said chairman B. Ramalinga Raju. The Satyam board today met to take on record the results of the fourth quarter and the fiscal ended March 31, 2003.
The total income during the quarter rose 14.7 per cent to touch Rs 553.47 crore compared with Rs 482.55 crore during the corresponding period last year.
Although the company posted a net profit of Rs 115.79 crore in the fourth quarter, exceptional expenses, including writing off its investments in a subsidiary, stood at Rs 151.70 crore.
After discontinuing the operations of its subsidiary Vision Compass Inc, the company made a provision of Rs 126.36 crore towards diminution in the value of investments and advances from the subsidiary.
The company has made a further provision of Rs 25.34 crore towards diminution in the value of investments made with strategic partners engaged in developing software tools in niche industrial sectors.
On the reasons for closing down the subsidiary, Raju said the business did not grow along expected lines and efforts to find a strategic partner did not succeed.
During the fourth quarter, exceptional expenses stood at Rs 151.70 crore compared with Rs 40.75 crore during the corresponding period last year.
The income from domestic sales during the fourth quarter came down to Rs 4.18 crore compared with Rs 5.66 crore during the corresponding period last year while software exports went up to Rs 534.24 crore from Rs 451.97 crore.
The total income of the company touched Rs 2,051.50 crore during the financial year, reflecting a 13.78 per cent increase over last year’s Rs 1,803.09 crore. Income from software exports during the year stood at Rs 2,003.29 crore compared with Rs 1,703.07 crore last year.
The company recommended a final dividend of 110 per cent (Rs 2.20 per share on par value of Rs 2 per share), subject to approval of members.
The NYSE-listed company was keen on acquisitions in the next fiscal, Raju said adding “There are a lot of opportunities out there and we have ability to take advantage of them.”
Satyam has added 100 customers during the year, including 23 fortune 500 clients.