Satyam Computer Services Ltd. (NYSE:SAY), a leading global business and information technology company, has reported US GAAP results for the second quarter of FY’09 with USD 652.2 million in revenues achieving an increase of over 28% year-on-year (YoY) growth and over 29% in profits. In line with this, company officials have attributed the positive results to the strong overall performance and rapidly growing presence in Middle East market, which has resulted in UAE registering a 167% (YoY) growth rate and contributing 40% of Middle East revenues. Global revenue for FY’09 is expected to be between USD 2.55 billion and USD 2.59 billion, up from USD 2.1 billion recorded in FY ‘08.
“Increased volatility in the currency environment in Q2 continues: having an adverse impact on our annual USD revenue growth rate of 3%. Despite this, we have increased our annual (IGAAP & USGAAP) earnings per share guidance, driven by operational efficiencies,” said V. Srinivas, CFO, Satyam.
A review of Satyam’s performance in the Middle East & Africa for the first half of FY’09 has shown impressive growth across the region as the second quarter of FY’09 saw an addition of 5 high profile customers and tripled Middle East revenues as compared to second quarter last year. Satyam serves close to 200 customers across the Middle East region and has seen triple digit YoY growth in most GCC countries. At a global level, 33 customers have been added during the second quarter, taking the total count close to 690 with 185 customers from the Fortune Global and US 500 list. Moreover, the company has also inducted a total of 1,814 associates, including 221 trainees to the organization, growing the global associates’ strength including subsidiaries and joint ventures to t 52,865 across 65 countries.
“At the half way mark in FY09, UAE’s revenues have already exceeded last year’s revenues. We are expecting Kuwait’s business to grow significantly. Likewise, Bahrain and Saudi Arabia are also looking very favorable. Overall, the Middle East market is a high focus area for the company and in terms of order booking, we look forward to an extensive growth in the region,” said Virender Aggarwal, Director and Sr.Vice President for Satyam's Asia-Pacific, Middle East, India and Africa operations.
Banking, Transportation and Telecom verticals are the major contributors to Satyam’s Middle East & Africa revenues during the first half of FY09. The company continues to expect increasing demand from these industries along with emerging ones such as Retail, Oil & Gas, Manufacturing and Public Sector to drive its growth in FY’09. Satyam’s consulting and enterprise business solutions Practice, has contributed most to its regional revenues on account of the increasing demand for ERP in the Middle East.
Satyam maintains a strong presence in this region, with over 200 full lifecycle implementations and a team of over 750 associates. The company leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest value business processes and improve their business performance. Further, Satyam has geared up extensively in the region with the presence of Global Solution Center in Egypt and business operations in most countries across Middle East & Africa.
“Our performance in Q2 has been encouraging. We continue to make significant investments in building competencies needed in this challenging environment,” said B. Ramalinga Raju, Founder and Chairman - Satyam.
