Revenues have grown by more than 43% over the past year’s corresponding quarter. There has been a matching jump in the gross profit and net profit levels with a marginal improvement in profitability margins. Earnings per share have gone up to Rs. 8.56 during the quarter, an improvement by 48%. The results were helped by sudden decline by external value of rupee helping the company to realize on the uncovered export earning a higher realization.

During this quarter Satyam has completed a large project providing end to end enterprise data warehouse solution to a telecom major. Further a US electric major has been helped in their acquisition, transition and integration activities covering a million of its clients. In the investment sector software solution the company has helped a management firm to rely on its analytics to sharpen their analysis. It has also completed avionics design for a air craft major. A leading Indian bank has entrusted its treasury management operations for software solution implementation. Satyam  has won SAP approval becoming its Global partner opening up a fortune 1000 customers who are not in its net.

Stock outlook

With the general decline of stock values Satyam’s stock has also lost value and is trading lower and notably near it medium term support levels. The stock can be expected to take support at this level especially as the decline in rupee values will help it grow. Satyam has second larges BPO in the world and long term can safely enter this stock at every decline from now on till the stock tests in support at Rs. 325-350 range. Medium term investor must consider booking their portfolio profits in the range Rs. 475-500 as increase in the stock prices will be limited due perceived slow down in the global economy.