At a Glance – Q3 Results FY 07-08 Revenue: Rs. 2,195.56 crore; up 8.1% sequentially and 32.2% YoY Net Profit: Rs. 433.63 crore; up 6% sequentially and 28.6% YoY Added 32 new customers, including 8 Fortune Global and Fortune US 500 companies Added 3,424 associates, taking the total associate strength to 49,199

- Total income for FY 08 to be between US$ 2,119.2 mn and US$ 2,122.1 mn, implying a growth rate of 45.0 % to 45.2 % over fiscal 2007.

Hyderabad, January 21, 2008: Satyam (NYSE: SAY) today announced the audited results of the company for the quarter ended December 31, 2007 (Q3).

Consolidated Indian GAAP Highlights

• Revenue was Rs. 2,195.56 crore; a YoY increase of 32.2% and a sequential increase of 8.1%
• Volume growth for the quarter was 9.4%
• Net Profit after Tax was Rs. 433.63 crore; a YoY increase of 28.6% and a sequential increase of 6.0%
• EPS was Rs. 6.48; a YoY increase of 26.1% and a sequential increase of 5.9%
• EBITDA margin for the quarter was 21.46%

• Revenue was US$ 562.9 million; up 49.9% YoY and 10.5% sequentially
• Net Income was $109.7 million; YoY increase of 54.3% and a sequential increase of 7.7%
• Basic earnings per ADS for the quarter was US$0.33; increase of 50% YoY and up 6.5% sequentially
• Operating margin (EBIT) was 19.04%

• The company ended the quarter with 44,847 associates, an addition of 3,424 associates including 2,128 trainees. Total employees including subsidiaries and joint ventures, is 49,199
• Attrition on a trailing twelve months fell to 13.1 % from 13.9 % in Q2
• Added 32 clients, including 8 Fortune 500 companies

• For fiscal 2008, under US GAAP, revenue is expected to be between US$ 2,119.2 mn and US$ 2,122.1 mn, implying a growth rate of 45.0 % to 45.2 % over fiscal 2007. Basic earning per ADS for fiscal 2008 is expected to be US$ 1.27, implying a growth rate of 39.6 % over fiscal 2007.
• Corresponding revenue growth under Indian GAAP consolidated is expected to be between 29.0 % and 29.2 %. EPS for the full year is expected to be Rs. 25.50, implying a growth rate of 18.90 %.
• For Q4 FY 2008, under US GAAP, revenue is expected to be between US$ 594.4 mn and US$ 597.3 mn, implying a growth rate of 5.6 % to 6.1 %. Basic earning per ADS for the quarter is expected to be US$ 0.36.
• For Q4 FY 2008, under Indian GAAP consolidated, corresponding revenue growth rate is expected to be between 5.3 % and 5.8 %; EPS for the quarter is expected to be Rs. 7.23.
  

In Q3, Nipuna changed its name to Satyam BPO Services. The organization posted revenues of US$15.3 million, and a net loss of US$2.4 million. The revenue guidance for FY08 is US$ 61 million, which represents growth of 60% over the previous year.

In Q3, Satyam BPO signed two new customers. The organization also won the prestigious and internationally-recognized Golden Peacock National Training Award for 2007, making it the first Indian BPO company so honored. The award emphasizes the Five Ts—total quality, transparency, trust, truthfulness, and training. Satyam BPO was selected from 186 entries, a testimony to the organization’s associate and leadership development, and its commitment to growing leaders faster than the competition.

Key Awards and Recognitions in this Quarter

• Satyam has been named a leader in SAP implementation capabilities by Forrester. ”The Forrester Wave: SAP Implementation Providers, Q4, 2007” (December 2007), by Stephanie Moore and Liz Herbert, places Satyam in the same category as companies heading “an extremely well qualified pack” and Rated No. 1 in current offerings among Indian organizations.
• A report published by IDC Research Director Albert Pang cited Satyam for its 10,000-person-strong ERP practice on Oracle and SAP products.
• Satyam’s founder and chairman, B. Ramalinga Raju, was accorded the Ernst & Young Entrepreneur of the Year Award 2007. Raju was selected for this honor, both for his business acumen and efforts to enhance the community.
• Satyam has been selected as the official IT Services Provider to the FIFA World Cup in 2010 (South Africa) and 2014 (Brazil).
• Satyam’s Customer Intimacy Marketing and Communication Program has won the ITSMA’s 2007 Marketing Excellence Award in “Strengthening Customer Relationships” category.
• Satyam’s Infrastructure Management Practice secured 13th position among the Global Top 20 service providers in the “Black Book of Outsourcing Vendors.” Satyam ranked third for brand image and marketing communication efforts and first for infrastructure applications monitoring parameters.
• Satyam won the Pegasystems Partner Innovation Award for helping the organization’s clients—financial institutions—comply with Anti-Money Laundering (AML) statutes.

• Satyam added 32 new customers in the third quarter including 8 Fortune 500 companies. Some prominent customer additions included FIFA, Federation Internationale de Football Association, a German IT services provider and a subsidiary of one of the world’s largest media and entertainment conglomerates and the organization responsible for public transportation in Greater London.

• The world’s largest steel manufacturer engaged Satyam to enhance its Total Cost Optimization program. The team analyzed its global plants to reduce expenditures, enhance knowledge management, and capture best practices across plants and geographies.

• Satyam is helping a Tier 1 global investment bank implement a new application architecture to accommodate its front and back-office and data management needs. The multi-site, multi-year transformational program will begin in Asia and Europe before moving to the US. Satyam is also a preferred supplier for all of the organization’s business lines.

• A global oil company engaged Satyam to develop a logistics solution, facilitate on-boarding solution for offshore-drilling platform personnel, and deliver IT services for its Global Gas Division.

• A healthcare technologies manufacturer and services provider hired Satyam for a critical value-engineering and product design project. Satyam is providing mechanical, electrical, safety, and reliability design services to transform the client’s business.

• A global manufacturer of pharmaceutical, diagnostic, therapeutic, surgical, and biotechnology products engaged Satyam to migrate an entire website into its private framework.

• Satyam signed an agreement to help the organization responsible for most aspects of Greater London’s public transport system with a broad range of IT services.

• Satyam is helping a German IT services company provide IT solutions to its parent company, a global media conglomerate, and to external customers.

• Satyam is providing an end-to-end solution for the world’s largest international multimedia news agency.

• Satyam has entered into a definitive agreement to acquire Chicago-based Bridge Strategy Group LLC (BSG), specialized in providing Strategy and Management Consulting Services to various large clients across different industry segments. The acquisition would strengthen Satyam’s position as a provider of transformational consulting services, deepening relationships with existing customers and would provide the engine for a global delivery model in strategy consulting.
  
  

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