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Satyam to continue its shopping spree
Posted by Srini Uppala | May 11, 2008 | 342 views
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Loading ...Draws up $125-m capital expenditure in 4 SEZs
With six acquisitions in about 18 months, and sitting on a cash pile of over $1 billion (Rs 4,000 crore), IT services provider Satyam Computer continues scouting for more acquisitions, according to the company’s Chief Financial Officer, Mr Vadlamani Srinivas.
The company has invested $250 million (Rs 1,000-crore) in six acquisitions — Knowledge Dynamics, Citisoft, Nitor Global, BridgeStrategy, S&V Management and Caterpillar arm.
We will concentrate on boutique acquisitions rather than a big one, as integration is easier. Therefore, we will pick and choose and not be hasty,” Mr Srinivas told Business Line.
The company has planned a capital expenditure of $125 million (about Rs 500 crore) that would go into developing four SEZs — two in Hyderabad and one each in Chennai and Nagpur. We have also signed up with Tamil Nadu for land in Madurai and with Gujarat for land in Ahmedabad. However, these will be taken up next year,” he said.
Referring to the banking, financial services and insurance sector, Mr Srinivas said that the Bear Stearns episode stands out impacting investments of companies. We have factored various issues and have given a guidance of 24-26 per cent for the fiscal 2009. This may be like a moderated guidance due to marketplace.
GOOD SIGNS
The last one week has been witness to some good news coming in, with the dollar strengthening and the rupee weakening. The US economy seems to be stabilising and the data is positive. This, coupled with the extension of the STPI sunset clause, will have a positive impact on the IT sector, he said.
The slowdown and recessionary trends would have an impact on the overall environment. However, we have not witnessed any delays in deals and will be cautious, he said.
PRICING, UILISATION
The pricing is likely to remain stable and we are confident that there is not much delay in firming up deals. About 70 per cent of the deals are time and material and the rest fixed price — the latter is not easy to decide, as most times clients do not know what they actually want,” he said.
Staff utilisation is at an optimal level (82 per cent) and attrition was brought down to 13 per cent in the last quarter, from 22 per cent about five quarters ago. Higher compensation, staggered cash bonus, ESOPs and career and leadership path have helped stem attrition, which is amongst the lowest in the industry now,” he said.
The salaries have been hiked by about 12-14 per cent offshore and 3-4 per cent onsite.
SOURCES:
Business Line
Topics: SEZ, Information Technology |
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