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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5085)	7/12/1999 7:20:00 AM
From: Mohan Marette	Respond to of 12475

India's Satyam 1st-Qtr Profit Rises 53 Percent on More Orders Satyam Computers Homepage satyam.com EquityWatch. walletwatch.com Bloomberg News July 12, 1999, 1:06 a.m. PT Mumbai, July 12 (Bloomberg) -- Satyam Computer Services Ltd., one of India's biggest software developers, said its profit rose 53 percent in the fiscal first quarter as it won contracts from new customers in the U.S. and Europe. Profit for the quarter ended June 30 rose to 233.5 million rupees ($5.4 million) from 152.9 million rupees a year ago. Sales rose 53 percent 1.21 billion rupees. ''The results are more or less in line with market expectations,'' said Nikesh Shah, head of research at Triumph Securities Ltd. ''The stock is expected to stabilize at this level.'' Shares of Satyam -- which write software programs for customers -- rose 3.7 percent to 1244 rupees after the earnings announcement. The rise in sales in the first quarter, boosted by a 53 percent rise in exports and 88 percent rise in domestic revenue, indicates that the company was able to offset sagging revenue from its Year 2000 bug-fixing businesses to other software development contracts, analysts said. The earnings growth ''puts to rest doubts on the Y2K business and falling profits and revenue arising from that,''said Aniruddha Dange, an analyst at brokerage ABN Amro Asia Equities India Ltd. Many software lagged a surge in the overall Indian stock market in the last three months on worries U.S. companies will halt new software development orders till Jan. 1 2000 when computers may crash on failing to adjust to the change in the millennium. Satyam shares have declined 29 percent since it reached a record high of 1700.00 on April 1 even as the benchmark Mumbai Sensitive Index of key stocks traded in the Mumbai Stock Exchange surged 18 percent in the same period. Infosys Technologies Ltd., India's best known software company and the only Indian company whose shares trade in the U.S., said last week profit for the quarter ended June 30 surged 156 percent, boosted by a 75 percent surge in exports as it reduced its Year 2000 solutions business to focus on other areas. Separately, Satyam said it will complete a plan to acquire its three units after it gets approval of Indian regulators and courts. First-quarter earnings, including the units it proposes to acquire, rose 73 percent to 267.9 million rupees.