Satyam net profit dips in Q2

Satyam Computers Ltd’s net profit has plunged 11.88 per cent for the second quarter ended September 2002. Net profit declined from Rs 134.08 crore to Rs 118.15 crore for the second quarter while total income has gone up to Rs 505.05 crore (Rs 453.50 crore).

Other income came down substantially from Rs 26.87 crore to Rs 5.91 crore which alone accounts for drop in net profit. Net profit for half year ending September 30 was also lower at Rs. 226.60 crore as against the previous year figure of Rs. 255.54 crore while total income grew from Rs 874.52 crore to Rs 976.53 crore during the current fiscal. “The drop in net profit is mainly due to the decline in other income but the sequential growth of the company is very encouraging,” Satyam chairman Ramalinga Raju told reporters after the board meeting, which approved 40 per cent dividend. Satyam plans to net Rs 540 crore during the next quarter as income from software services and the operating margin is expected to be around 32 per cent, Raju said.