Indian computer services giant Satyam Computer Services continued its impressive revenue growth record with a 44% sales increase in the first quarter of its fiscal year 2005 compared to the year-ago period.
The Secunderabad, India-based company made sales of $175.0m for the three months to the end of June 2004, and net profit increased to $36.4m compared to $23.6m in the first quarter 2004.
The company also decided to increase its guidance for the rest of the year. For fiscal 2005, it now expects to make revenue of INR 3.268bn ($707m) to INR 3.312 ($716m), which would represent annual growth of up to 30%. Earnings per share expectations for the year have also been increased, to between INR 21.71 ($0.47) and INR 22.06 ($0.48).
Satyam’s chairman, B Ramalinga Raju, said the number of customers that it made more than $1m in revenue from over the last four quarters had increased 50% to 96, and that the number of customers bringing in between $5m and $10m had grown at a similar rate.
He also claimed that a growth in customers – it added 25 new customers during the quarter including 3 Fortune 500 companies, had lessened its reliance on key customers. Its top 10 customers now make up 42.6% of revenue as opposed to 51.3% a year ago, he said.
Its BPO subsidiary, Nipuna, made revenue of INR 701m ($15.1m) and doubled its headcount to 1060 during the quarter. Of its total of 14 customers, 12 are also Satyam customers, which Raju said indicates the potential for cross-selling of services across our entire customer base.