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Tuesday, April 22, 2008

Satyam Computer Services Ltd (Q4 FY08): Strong quarter and guidance

Satyam Computer Services Ltd (Q4 FY08): Strong quarter and guidance
 
CMP Rs459, Market Performer
Target price Rs457,  Downside 0.4%
 
ä       Sector-leading revenue growth continues with 10% qoq growth in Q4 FY08
ä       EBITDA margin improve by 130 bps qoq driven by higher utilization, improved pricing, offshore shift and break-even in BPO
ä       Lower other income due to forex losses restricts net profit growth to 7.7% qoq
ä       Q1 FY09 guidance strong for EPS growth but modest on revenue growth
ä       FY09 guidance above expectations; but still room for outperformance
ä       Remain positive (relative to the sector) on Satyam with a target price of Rs457
 
Click below for the quarterly update of Satyam Computer Services Ltd.
 


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