01/10 09:59 Satyam Computer <SATY.BO> Q3 net seen surging
To answer your question, it is Sify's parent who is reporting tomorrow.
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By Anantharaman Muralikumar
BOMBAY, Jan 10 (Reuters) - Strong overseas demand for software services and higher e-commerce revenues will fuel a surge in third quarter 1999/2000 (April-March) profits at India's Satyam Computer Services Ltd, analysts said on Monday.
Some analysts forecast net profit in the range of 300 million rupees ($6.9 million) to 335 million for the three months ended December 31, 1999 and revenues in the range of 1.5 billion rupees to 1.70 billion.
Nilambu Syam, analyst at Kotak Securities, said he expected Satyam's third quarter net profit of about 335 million rupees and revenues of about 1.7 billion compared to a net profit of 198 million and revenues of 1.0 billion in the year-ago quarter. "Growth will be driven by higher business volume and also by focus on areas like e-commerce," he said.
Satyam Computer is unveiling its results on Tuesday.
Ketan Shrimankar, director at Piyush Vora Securities, said while Satyam's year-on-year profits growth will jump, quarter-on-quarter operating margin growth will decline to about 35 percent from about 39 percent in the previous quarter.
"The shrinking of Y2K-related work will have some impact on operating margins," he said, forecasting Satyam's third quarter profit at 300 million rupees and revenues of 1.5-1.6 billion.
Merrill Lynch said in a recent research report it had set a 'Buy' rating on Satyam because of its Internet foray and set a 12-month price objective of 3,000 rupees on its stock.
It said the company's business mix has improved and investors have started valuing its stake in Satyam Infoway Ltd <SIFY.O>, the Nasdaq-listed Internet subsidiary of Satyam Computer.
"Satyam is registering a significant increase in revenues from Internet services (15 percent of total revenues in the second quarter) and other high growth areas such as engineering, telecommunication and embedded software," the report said.
"We expect the company's revenues to grow by 63 percent annually over FY1999-2002, driven by strong growth in these new areas," it said.
Satyam Computer shares ended Monday up 182.70 rupees at 2,467.10 on the Bombay Stock Exchange (BSE).
Analysts forecast a quarterly net profit of 60-62 million rupees and revenues of between 444 million and 500 million for Sonata Software Ltd <SOFT.BO>.
They forecast a net profit of 76-80 million rupees and revenues between 300 million and 380 million for Polaris Software Lab Ltd <POLS.BO>.
Sonata and Polaris also are unveiling their quarterly results on Tuesday. Sonata shares ended down 135.85 rupees at 1,659.10 but Polaris gained 89.10 rupees to 1,892.90 on Monday at the BSE. ($1 = 43.515 rupees)
((Bombay equities, +91 22 265-9000, +91 22 264-1699, anantraman.muralikumar@reuters.com)) |
