Satyam net profit jumps 85 pc

The board also passed an enabling resolution for increasing foreign institutional investors’ investments in the company to 40 per cent and those of NRIs and OCBs by an additional 10 per cent. Satyam shares, which were brought into the benchmark Bombay Stock Exchange 30-share Sensex on Monday, gained eight per cent to close at Rs 4,219.90, boosted by foreign fund demand, dealers said.

Three group companies were merged with Satyam with effect from April 1, 1999, and hence, the accounts for the year were consolidated, the company said in a statement after its board meeting at Hyderabad today.

Satyam said it changed its technology mix significantly in the year ending March 31, 2000 to take account of a decline in Y2K solutions business. It said just 5.2 per cent of revenues came from this area compared with 28 percent the previous year. Just over half its revenues came from application development and maintenance business during the year while specialised services grew. E-commerce projects contributed 17.4 per cent, enterprise resource planning solutions contributed 9.5 per cent and telecom and digital communications 11.2 per cent, it said.

"Total solutions business made up over 25 per cent of total revenues. This underscores the quick progress the company has made in moving towards upstream consulting and system integration opportunities," it said.