Satyam Computer Services, India's fourth-largest software maker, said Monday third quarter net profit rose 28.6 percent, and announced the purchase of a US-based consulting firm.
The Hyderabad-based company said net profit rose to 4.33 billion rupees (110.03 million dollars) in the three months ended December 31, from 3.37 billion rupees a year earlier, as it added 32 new customers during the month. The profit, in line with analyst expectations, was notched up on a 35.6 percent increase in revenue to 22.66 billion rupees during the period.
Satyam chief financial officer Srinivas Vadlamani credited the increased profit to higher productivity and billing rates. The company's new customers took its client base to 630. Satyam said it had reached a definitive agreement to buy Chicago-based consulting company Bridge Strategy Group for 35 million dollars in cash to expand its service offerings.
Indian software companies are trying to gain a foothold in the consulting business to back up their sales network. "As we deepen our relationships with longstanding customers, they expect us to provide highly strategic counsel," said Satyam chairman B. Ramalinga Raju. "We are now more able to accommodate that demand."
Satyam shares fell 1.2 rupees, or 0.32 percent, to 371.4 rupees at the close of trading on the Mumbai stock exchange. The benchmark Sensex index plunged 1,408.35 points, or 7.41 percent, to 17,605.35 on worries of a possible recession in the US.
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