Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (704)	2/14/2000 2:43:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1471

Now, SIFY pulls ahead of its parent in the m-cap race Denny Thomas MUMBAI 14 FEBRUARY IN the market capitalisation (m-cap)game, it matters little whether the parent company makes more profits than its subsidiary or whether the subsidiary makes any profit at all. All that matters, it would appear, is perception of investors and the faith that they repose in a company's ability to deliver the goods in the days to follow. Only this could explain why the m-cap of SatyamIn early Monday trade on the Nasdaq, Satyam Infoway's (SIFY's) m-cap stood at $5.4bn (having touched a high of $5.9bn on Friday). The m-cap of Satyam Computers at the end of today's trading on the domestic bourses stood at Rs 20,373 crore ($4.7bn). Where as SIFY is still struggling to break even, the parent company has a fairly strong track record. Market players said that the sudden interest in Satyam Computers stems from the fact that the parent company still holds 60 per cent in Satyam Infoway. The fact that the SIFY is yet to break even has not deterred market players from awarding it much higher valuations than the parent, which actually posted a net profit of Rs 72 crore during fiscal '99. As for revenues, that all-important word in the Net business, from a mere Rs 1 crore revenue in March ?98, SIFY's revenues have jumped to Rs 10 crore in a year. Sales for the nine-month period (March-December '99) reached Rs 38 crore and are expected to touch Rs 60 crore by the end of March 2000. Satyam Infoway's main source of revenue is its subscriber base and web constancy. The user base for its internet service provider (ISP) service, at 120,000, is second to VSNL which is estimated at 300,000. The company claims that it can reach 60-70 per cent of the PC population in a year. SIFY raised $80m through its American Depository Receipts (ADRs) in October ?99 at $18 a share. However, on the very first day of trading, the ADS opened firm at $45 and later settled at $35. Close to $6.5m changed hands on the first trading day. Analysts tracking the company believe that the recent acquisition of India World Communications, at Rs 500 crore, will help Satyam Infoway increase its top-line. Satyam Infoway today announced US GAAP quarterly results for the quarter and the nine-month period ended December 31, '99. Revenues for the quarter were Rs 18.4 crore, against Rs 2.2 crore for the corresponding quarter of the previous year. Nine-month revenues were Rs 39.2 crore, as compared to Rs 5.7 crore compared to the previous period. Net loss for the nine-month period was Rs 7.3 crore, against Rs 5.3 crore for the previous year. economictimes.com