Satyam Computer surged for the second straight session on Friday.
The stock of the Hyderabad-based software major was up by 1.2% at Rs 230.90 on the BSE in early-afternoon trades. Earlier, it hit a high of Rs 231.70, recovering from the day's low of Rs 225.55.
For a stock like Satyam Computer that is thickly traded, the volume of 3.59 million shares was quite modest. The stock staged a comeback on Thursday, recovering from the day's low of Rs 221.35. It gained 1.7% on that day to settle at Rs 228.10 with a modest volume of 4.38 million shares.
The current recovery in the stock comes after it plunged soon after the company announced disappointing Q3 results in late January 2003. Institutions pared their exposure to the stock after the results.
According to dealers, some of the institutions are now mopping up the stock.
On Thursday, Satyam Computer announced that it will provide consulting services to Texas Instruments' digital signal processor customers in an effort to accelerate development and drastically reduce time-to-market for customers working on wireline, wireless, audio-speech and video-imaging applications. Texas Instruments is the fourth-largest semiconductor in the US in terms of revenues.
Earlier, on Monday, Satyam Computer announced a strategic alliance with Ansys Inc., a global innovator of simulation software and technologies designed to optimise product development processes, which will help customers accelerate product innovation, time-to-market and quality. This alliance will allow the two companies to jointly deliver product design solutions that combine Ansys' simulation software products - including Ansys Workbench, an engineering simulation platform- with Satyam's engineering consulting, configuration, customisation and on-site development strategy for aerospace, automotive, power generation, heavy machinery, consumer products and electronics industries.
Satyam Computer announced dismal third quarter (ended 31 December 2002) results last month. It posted a 2.2% fall in net profit to Rs 116.73 crore (Rs 1.16 billion) from Rs 119.43 crore (Rs 1.19 billion) in the corresponding period of the previous year. Sales jumped by 19.8% to Rs 522.26 crore (Rs 5.22 billion) from Rs 435.77 crore (Rs 4.35 billion).
The poor results prompted Satyam Computer to revise downwards its revenue and earning per share guidance for the current financial year to Rs 2,010 crore-Rs 2,020 crore (Rs 20.1-Rs 20.2 billion) and Rs 14.57-Rs 14.66, respectively. This is for the second straight time that the company has revised downwards its FY 2002-03 EPS forecast.
At the time of announcing Q2 (ended 30 September 2002) results, the company had revised downward its FY 2002-03 EPS guidance to Rs 16.06-16.26, from the earlier forecast of Rs 17.10-Rs 17.50. It had cited a stronger rupee and the resultant fall in other income for the revision.
BSE code: 500376
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