On April 20, Satyam Computer
- The top line improved by 33%, primarily due to rise in revenues from consulting and enterprise business solutions.
- Wage hikes negatively affected margins. Salaries increased 5% overseas and 16% for associates in India.
- Satyam estimates revenue growth rate of 28% to 30% in fiscal 2008.
- Satyam carries the coveted five-star rating in Motley Fool CAPS, while competitors Infosys
(NASDAQ:INFY) and Wipro(NYSE:WIT) have earned four stars each.
(Figures in millions, except per-share data.)
Income Statement Highlights|
FY 2007 |
FY 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,461.4 |
$1,096.3 |
33.3% |
|
Net Profit |
$298.4 |
$249.4 |
19.6% |
|
EPS |
$0.45 |
$0.38 |
18.4% |
|
Diluted Shares |
666.0 |
662.8 |
0.5% |
Get back to basics with the income statement.
Margin Checkup
|
FY 2007 |
FY 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
35.8% |
37.2% |
(1.3) |
|
Operating Margin |
20% |
20% |
(0.1) |
|
Net Margin |
20.4% |
22.8% |
(2.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$152.2 |
$696.5 |
(78.1%) |
|
Accounts Rec. |
$364.2 |
$220.0 |
65.5% |
|
Liabilities |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$16.8 |
$11.9 |
41.2% |
|
Long-Term Debt |
$22.2 |
$17.9 |
24% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$261.5 |
$162.7 |
60.7% |
|
Capital Expenditures* |
$85.6 |
$67.8 |
26.3% |
|
Free Cash Flow |
$175.9 |
$94.9 |
85.4% |
*Capex includes acquisition costs.
Free cash flow is a Fool's best friend.
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