Satyam's Moment of Truth It's still India's #4 IT company, but the gap between Satyam and the other Tier-I players such as TCS, Infosys and Wipro is growing. Why has Satyam lost pace and what is its founder-Chairman Ramalinga Raju doing to accelerate growth?
Business Today, March, 2007 by Vankatesha Babu additional reporting by Rahul Sachitanand
On January 19 this year, Hyderabad-based Satyam Computer Services announced its third quarter numbers. By most measures, the results were impressive. Its revenues had grown 31 per cent to Rs 1,661.1 crore compared to the same quarter in the previous year, and its net profit had jumped 25 per cent to Rs 337.2 crore. Yet, Dalal Street reacted by hammering the Satyam stock by 6 per cent on that day, wiping out nearly $500 million (Rs 2,250 crore) in market capitalisation.
What went wrong? While announcing the results, Satyam's founder- Chairman, Ramalinga Raju, said that the company was revising- downwards-its growth guidance for 2006-07: Instead of the initial projection of Rs 6,476 crore in revenues for the full year, Satyam would now be doing anything between Rs 6,434 crore...
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