At a Glance – Q4 Results FY 07-08 Revenue: Rs. 2,416.02  crore; up 10%  sequentially and 35.8 YoY Net Profit: Rs. 466.85 crore; up7.7% sequentially and 18.6% YoY Added 32 new customers, including 4 Fortune 500 companies Added 1,122 associates, taking the total associate strength to 51,127

Hyderabad, 21 April 2008: Satyam declared its results for the fourth quarter and the fiscal year ended 2008, today. Revenue for the year grew by 30.7%, while profits grew by 20.2% over fiscal 2007. Other highlights of the performance are as follows:

Consolidated Indian GAAP Highlights

The highlights of the results under Indian GAAP Consolidated basis are:

Q4 FY08

• Revenue was Rs. 2,416.02 crore; a YoY increase of 35.8% and a sequential increase of 10.0%.
• Net Profit after Tax was Rs. 466.85 crore; a YoY increase of 18.6% and a sequential increase of 7.7%.
• EPS for Q4 was Rs. 6.97; a YoY increase of 16.6% and a sequential increase of 7.6%.
•  EBITDA margin for the quarter was 22.79%.

FY 2008

• Revenue was Rs. 8,473.49 crore; a growth of 30.7% over fiscal 2007.
• Net profit after tax was Rs. 1,687.89 crore; a growth of 20.2% over fiscal 2007.
• EPS at Rs. 25.24 grew by 17.7% over FY 2007.
• EBITDA margin for the year was 21.65%.

• The parent company ended the quarter with 45,969 associates, an addition of 1,122 associates including 679 trainees for Q4 08. The number of associates including the subsidiaries and joint ventures stood at 51,127.
• Attrition on a trailing twelve months basis fell to 13.09% from 13.11% in Q3. Annualized quarterly attrition for Q4 stood at 11.48%.
• 32 customers including 4 Fortune 500 customers added.

• For fiscal 2009, under US GAAP, revenue is expected to be between US$ 2.65 bn and US$ 2.69 bn, implying a growth rate of 24.0% to 26.0% over fiscal 2008. Basic earning per ADS for fiscal 2009 is expected to be between US$ 1.44 and US$ 1.47, implying a growth rate of 15.2% - 17.6% over fiscal 2008.
• Corresponding revenue under Indian GAAP consolidated is expected to be between Rs. 10,500 crore and Rs. 10,670 crore, implying a growth rate of 23.9% and 25.9% over fiscal 2008. EPS for the full year is expected to be between Rs. 29.54 to Rs. 30.04, implying a growth rate of 17% to 19%.
•  For Q1 FY 2009, under US GAAP, revenue is expected to be between US$ 631.7 mn and US$ 634.8 mn, implying a growth rate of 3% to 3.5%. Basic earning per ADS for the quarter is expected to be US$ 0.38, implying a growth rate of 11.8%.
• For Q1 FY 2009, under Indian GAAP consolidated, corresponding revenue is expected to be between Rs. 2,500 crore and Rs. 2,512.5 crore, implying a growth rate of 3.5% and 4.0%; EPS for the quarter is expected to be between Rs. 7.64 to Rs. 7.68, implying a growth rate of 9.7% to 10.2%.

Business Highlights – Q4, Fiscal 2008

Satyam added 32 customers in Q4, four of which were Fortune 500 companies. All these four are in the financial services industry, which was, as a whole, judicious in its awarding of contracts. A sampling of the work Satyam is doing with high-profile, global organizations follows.

• Satyam's quality consulting expertise and exceptional working relationship with other vendors helped it win a quality consulting project for a large Korean shipbuilding and heavy equipment manufacturing company.
• Satyam is implementing its Business Intelligence framework, iDecisionsTM on a "customer lifetime value enhancement" project for a large insurance company.
• Satyam applied the Theory of Constraints to help a large Indian cement company transform its production schedules. The team created and implemented several strategies that reduced kiln downtime by between 20 and 30 percent, a huge boon to productivity.
• Satyam is helping a telecom company based in the Middle East standardize its processes, increase operational efficiencies, and report data more effectively via a large-scale, end-to-end ERP implementation. Satyam is working with the organization to define its requirements and design a robust solution.
• Satyam worked with Canadian healthcare officials and an Ontario university to streamline the sharing of patient electronic health records. The program will reduce waiting times, a key requirement of the country's healthcare program.
• Satyam is working on several business integration projects for an Australian banking and insurance company, including enablement of enterprise-wide customer analytics and campaign management.

Satyam enters agreement to acquire S&V Management Consultants

Satyam agreed to acquire S&V Management Consultants, a Belgium-based supply chain management (SCM) consulting firm. Founded in 1992, S&V specializes in supply chain strategy and performance, and supply chain process excellence solutions.

S&V features 60 top-notch consultants, all of whom are Six Sigma-trained and APICS-certified. As a part of this transaction, Satyam also acquires an innovative business decision support software called Equazion®, a sophisticated supply chain performance management suite. The acquisition significantly reinforces Satyam's supply chain strategy capabilities.

S&V will operate as a fully owned subsidiary of Satyam, maintaining its name and brand for the near future. The all-cash, $35 million consideration includes initial and performance-based payments.

Satyam to acquire Caterpillar's Market Research and Customer Analytics (MR&CA) operations

Satyam and Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, have agreed to terms for the sale of Caterpillar's Market Research and Customer Analytics (MR&CA) operations.

The deal calls for Satyam to acquire Caterpillar's MR&CA intellectual property and assets for $60 million. Satyam will also launch a business unit to provide MR&CA solutions and services globally to Caterpillar and to its other customers in various industries.

CAT's MR&CA intellectual property and assets will complement Satyam's business consulting capabilities, deep industry knowledge, and market research processes. Satyam is now positioned to offer knowledge process outsourcing services to the greater marketplace, a step in line with its objectives to transform its clients' businesses.

Awards & Recognition

Satyam Earns Several Investor Relations Awards

The IR Global Rankings (“IRGR”), instituted by MZ Consult, (a global investor relations and financial communications firm), included Satyam in the five organizations it determined to have the “Best IR Website” in the Asia Pacific & Africa region. The awards recognize organizations that provide complete, accurate, and timely investor relations information.

Satyam also earned the top ranking in the global technology industry (and in India) for “Best Earnings Release and Financial Disclosure Procedures.” For the third consecutive year, Satyam was named one of the Top 5 APAC and Africa organizations with respect to earnings and disclosure practices. The organization also was judged to be among the region’s top two for “Best Corporate Governance Practices.” It is the second consecutive year Satyam has been recognized in this category.

Independent Research Firm Places Satyam among Oracle Implementation Leaders

An independent research organization named Satyam among the world’s leaders in Oracle implementation capabilities. “The Forrester WaveTM: Oracle Implementation Providers, Q1, 2008 (March 2008)” places Satyam among the leaders of “an extremely well-qualified pack.” The report also noted that Satyam has approximately 5,800 resources aligned across verticals such as airlines, financial services, higher education, life sciences, retail, telecom, and utilities. The provider has focused on building out industry-specific solutions and accelerators to reduce costs and speed time-to-market for its clients across a range of Oracle products.

Satyam BPO Earns Shared Services Honors

Satyam BPO won two prestigious Shared Services Excellence awards from the International Quality and Productivity Council. The company was honored in Orlando, Fla. during Shared Services Week, a conference organized by IQPC. Satyam was a winner in the “Best Business Process Outsource Provider” and “Best Customer Service Delivery Framework” categories. The IQPC Shared Services Excellence Awards honor, recognize, and promote Shared Services Organizations (SSOs) that demonstrate true best practices.

Business School recognizes Satyam’s IT Practices

The Amity Business School in Noida, India, honored Satyam with an award for “Best IT Practices—IT Sector.” The school’s in-house industry research team evaluated more than 200 companies on criteria such as culture, rewards and recognition, performance management, compensation and benefits etc.

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