Satyam Computers Services Ltd-Financials/Analysis
Shareholding
Indian promoters : 33.0 %
Foreign collaborators :
Indian inst/Mut Fund : 12.5 %
FII's : 30.0 %
Public/Free float : 24.5 %
No. of shareholders : 34,808
SATYAM COMP
Last traded on: 19/11/99, %change over previos close: 0.93%
Exg. Code Open (Rs) High (Rs) Low (Rs) Close (Rs) Vol. (nos) Value (Rs)
B 376 1615 1655 1615 1630 1045326 1712279936
Profile
Satyam Computers Services Ltd. (SCS), has evolved from being a basic software provider to becoming a totally integrated IT solutions provider. Its activities include software services and engineering, systems integration, electronic commerce, software product development and management consultancy. It offers software services covering a broad range industrial sectors like telecom, manufacturing, financial services, insurance, banking and transportation. Satyam has 6 development centres in India, and has opened offices in several countries (including USA, UK, Australia and Japan) to offer services in application development and maintenance, systems integration, conversion and migration and Y2K solutions. Exports account for 94% of revenues. To deal with the Y2K problem, Satyam has its own SOS2000 methodology. During FY98, the company posted a 100% rise in revenues, while net profit increased sharply by 103%. Exports also posted a steep rise of 98%. A 5% depreciation of the rupee, increases the company's export earnings by 17%. In the future, it is expected to be a marginal player in the domestic market, which is not very lucrative, and shall operate mainly in the ERP segment. Satyam is venturing into Internet related services, which is a high growth, high risk area. One reason the company is diversifying into other areas is to avoid overdependence on Y2K related income. Right now Y2K solutions account for about 29% of revenues. The company targets a Rs 5 bn turnover by FY2000.
Equity Share Data
No. of Months 12 12 12
Year Ending 31/03/97 31/03/98 31/03/99
High Rs 64 268 850
Low Rs 32 49 123
Sales per share Rs 34.3 68.6 145.3
Earnings per share Rs 7.2 14.6 27.7
Cash flow per share Rs 9.6 23.4 44.2
Dividends per share Rs 2.00 2.00 3.00
Dividend yield % 3.1 0.7 0.4
Book value per share Rs 33.3 39.5 64.1
Shares outstanding (eoy) mn 26.02 26.02 26.02
Bonus/Rights/Conversions DC - -
Price/Sales ratio x 1.9 3.9 5.8
P/E ratio x 8.9 18.3 30.7
P/CF ratio x 6.7 11.4 19.2
Price/Book value x 1.9 6.8 13.3
Dividend payout % 27.8 13.7 10.8
Mkt Cap Rs mn 1,665 6,973 22,117
No. of employees 000 1 2 4
Total wages & salary Rs mn 328 728 1,428
Sales/employee Rs Th 744.2 791.6 1,055.6
Wages/employee Rs Th 273.3 322.8 398.7
Net profit/employee Rs Th 155.8 169.0 201.0
Income Data
No. of Months 12 12 12
Year Ending 31/03/97 31/03/98 31/03/99
Gross sales Rs mn 893 1,785 3,781
Other income Rs mn 5 116 3
Total revenues Rs mn 898 1,901 3,784
Gross profit Rs mn 351 786 1,467
Depreciation Rs mn 63 229 430
Interest Rs mn 57 120 264
Profit before tax Rs mn 231 437 773
Tax Rs mn 44 56 53
Profit after tax Rs mn 187 381 720
Gross profit margin % 39.3 44.0 38.8
Effective tax rate % 19.0 12.8 6.9
Net profit margin % 20.9 21.3 19.0
Balance Sheet Data
No. of Months 12 12 12
Year Ending 31/03/97 31/03/98 31/03/99
Current assets Rs mn 480 902 1,833
Current liabilities Rs mn 169 226 395
Net working cap to sales % 34.8 37.9 38.0
Current ratio x 2.8 4.0 4.6
Inventory turnover ratio Days 0 0 0
Debtors turnover ratio Days 95 98 100
Net fixed assets Rs mn 929 1,413 2,449
Share capital Rs mn 260 260 260
"Free" reserves Rs mn 632 767 1,409
Net worth Rs mn 867 1,027 1,669
Long term debt Rs mn 198 763 1,813
Total assets Rs mn 1,425 2,458 4,547
Interest coverage x 5.1 4.6 3.9
Debt to equity ratio x 0.2 0.7 1.1
Sales to assets ratio x 0.6 0.7 0.8
Return on assets % 13.1 15.5 15.8
Return on equity % 21.6 37.1 43.1
Return on capital % 22.9 28.0 28.3
Exports (fob) Rs mn 810 1,600 3,218
Imports (cif) Rs mn 34 61 148
Exports to sales % 90.7 89.6 85.1
Imports to sales % 3.8 3.4 3.9
Fx inflow Rs mn 810 1,600 3,218
Fx outflow Rs mn 375 922 1,943
Net fx Rs mn 435 678 1,275
Interim Results
No. of Months 6 6
Year Ending 30/09/98 30/09/99
Sales Rs mn 1,707 2,937
Other income Rs mn 1 6
Turnover Rs mn 1,708 2,943
Gross profit Rs mn 642 1,129
Depreciation Rs mn 168 338
Interest Rs mn 115 195
Profit before tax Rs mn 359 596
Tax Rs mn 22 30
Profit after tax Rs mn 337 566
Gross profit margin % 37.6 38.4
Effective tax rate % 6.1 5.0
Net profit margin % 19.7 19.3
Expense Rs mn 1,066 1,814
Fx Transactions
Fx Transactions FY99
Exports (fob) : Rs mn 3,218
Imports (cif) : Rs mn 148
Fx inflow : Rs mn 3,218
Fx outflow : Rs mn 1,943
Net fx : Rs mn 1,275
Courtesy:em
