Satyam has reported a 20% jump (QoQ) in topline and the bottomline has gone by up 30% in 3QFY01. On a YoY basis the net profit has gone up by 141% and revenues by 84%. The 30% jump in bottomline has come despite a 54% decline in other income QoQ (Rs 52 m).
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
We were expecting a QoQ rise of 15% in Satyam’s revenues. The company has beaten the market expectations by recording higher growth in profits and revenues. It has significantly improved its operating margins and net profit margins at 37.8% and 26.2% respectively.
*Excluding other income
Satyam has made effort to control expenses. Operating and administration expenses have come down to 21% of revenues in 3QFY01. This has resulted in an improved operating margin. The personnel cost has gone up to 41% as compared to 37% last year. Satyam added 1,093 employees to its rolls this quarter.
At the current market price of Rs 369 , Satyam is trading at a P/E multiple of 20.5x the nine months annualised earnings for FY01.
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