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Satyam 3QFY01 net zooms 141% - Views on News from Equitymaster
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  • Jan 8, 2001

    Satyam 3QFY01 net zooms 141%

    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).

    (Rs m) 2QFY01 3QFY01 Change
    Sales 2,725 3276 20.2%
    Other Income 114 52 -54.4%
    Expenditure 1,774 2039 14.9%
    Operating Profit (EBDIT) 951 1,237 30.0%
    Operating Profit Margin (%) 34.9% 37.8%  
    Interest 92 76  
    Depreciation 233 242  
    Profit before Tax 741 971 31.1%
    Tax 71 95  
    Profit after Tax/(Loss) 670 876 30.7%
    Net profit margin (%) 24.6% 26.7%  
    No. of Shares (eoy) 281.2 281.2  
    Diluted Earnings per share* 9.5 12.5  
    P/E (x)   29.6  

    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.

    Growth (%) Actual Expectations
    Sales 20.2% 15%
    Operating profit 30.0% 15.3%
    Net profit* 48.4% 15.9%

    *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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    Jul 3, 2013 (Close)


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