India's Satyam First-Quarter Profit Up 7%, Below Forecasts
Satyam Computer Services, India's fourth-largest software exporter, reported a 7% rise in quarterly profit on Friday, below forecasts as a stronger rupee hurt margins.
New York-listed Satyam , which specializes in business software, said
consolidated net profit for for the fiscal quarter ended June rose to 3.78 billion rupees (US$94 million) up from 3.54 billion rupees a year earlier.
A Reuters poll had forecast a mean net profit of 3.89 billion rupees for Satyam, whose leading customers include General Electric and Qantas Airways.
Satyam reported its results after bigger rivals Tata Consultancy Services and Infosys Technologies beat expectations. Third-ranked Wipro had missed forecasts.
Software firms have been winning large outsourcing deals but a stronger rupee, which has risen more than 9.5% against the U.S. dollar this year, poses a problem as the companies get about 60% of their revenue from the United States.
Shares in Satyam, based in the southern city of Hyderabad, fell in the June quarter, in line with a decline in the sector index, but lagging a 12% gain in the main Mumbai index.