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Satyam Computer Services
(BSE: SATYAMCOMP)
India
After being in the shadows of the Big Three in India (TCS, Wipro, and Infosys), Satyam has emerged as a player in its own right over the past year. It had suffered from several problems in the past, like finding good talent and a limited product line. But the company changed tack. It upgraded its service offerings, focusing on the hot sectors of banking, financial services, and insurance. These new services account for more than 25% of Satyam's revenues. Consequently growth, which in 2005 was subdued vs. the market leaders, saw a spurt, narrowing the valuation gap between them and Satyam. Today, Satyam trades at 15 times forward 2007 earnings, compared to Infosys' 21 times. That's a vast improvement over last year, when Satyam's valuations lagged Infosys' by 10 times. The market expects Satyam's improved performance to continue over the next year.
Company Info |
|
| 2005 Rank | 85 |
| Sales* ($ Millions) | 1,035.4 |
| Sales Growth (over prev. year) |
36 % |
| Profits* ($ Millions) | 246.7 |
| Return on Equity | 26.4 % |
| Total Return on Sales (12-mo.) | 54.0 |
| Share Price As of 5/31/06 | 14.94 |
| CURRENT MARKET INFO | BSE: SATYAMCOMP |
| No. of Employees | |
| Industry | Services |
| COMPANY WEB SITE > | |
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Satyam Computer Services, together with its subsidiaries, operates as a consulting and information technology services company. The company provides various IT services, including, application development and maintenance services, consulting and enterprise business solutions, extended engineering solutions, and infrastructure management services. It offers consulting and enterprise business solutions services in the areas of enterprise resource planning, customer relationship management and supply chain management, data warehousing and business intelligence, knowledge management, document management, and enterprise application integration. The company, through its subsidiary, Nipuna, provides business process outsourcing services, such as back-office transaction processing services, customer care services, and product support and technical help desk services in the areas of finance and accounting, human resources, claims administration, and document management, as well as offering research, analytics, and animation services. Satyam's e-business services include designing, developing, integrating, and maintaining Internet-based applications, such as e-commerce Web sites, and implementing packaged software applications, such as customer or supply chain management software applications. It provides its services to Fortune Global 500 or Fortune U.S. 500 companies, as well as customers from various industries, including manufacturing, banking and financial services, insurance, telecommunications, infrastructure, media and entertainment, semiconductors, health-care, retail, and transportation industries in North America, Europe, the Middle East, and the Asia-Pacific region. The company was co-founded by B. Ramalinga Raju and B. Rama Raju in 1987 and is headquartered in Hyderabad, India.
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