Tuesday, July 26, 2005

Outsourcing: Mixed results for Indian giants

From: australianit

SATYAM Computer's first-quarter net profit rose 16 per cent. The company won more clients as the outsourcing boom continued. The figure fell short of forecasts for India's fourth-largest software exporter. Net profit rose to 1.9 billion rupees ($57.5 million) for the three months to June, from R1.64 billion a year earlier, as revenue increased by 35.7 per cent to R10.6 billion. Shares of New York-listed Satyam Computer Services rose 1.41 per cent to R511.50 on the Mumbai stock exchange after the company revised its earnings upward. Revenue will increase by about 30 per cent to R45.3-R45.6 billion for the year, rather than by the previously estimated 28 per cent "in the light of better than expected performance in the first quarter. Net profit for the fourth quarter to March was R2.06 billion.
India's second-largest software firm, Infosys, kicked off the earnings season the week before with a disappointing first-quarter net profit of R5.32 billion. While up 37 per cent from a year earlier, it was below analysts' forecasts of R5.41 billion, prompting a stock sell-off. Infosys says earnings were hit by rising salaries.
However, India's top software exporter, Tata Consultancy Services, pleased the market with a first-quarter net profit rise of 22.59 per cent to R6.1 billion, as its international business grew by more than 5 per cent.
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