Markets News

India's Satyam sees FY09 margins improving 50 bps

MUMBAI, July 18 (Reuters) - Satyam Computer Services Ltd SATY.BO, India's No. 4 software services exporter, expects to see margins for the full year to March expanding by 50 basis points, despite wage increases and a fluid environment.

In April, Satyam had said operating margins for the full year could be flat to 40-50 basis points lower.

Satyam expects to raise offshore wages by 12-14 percent and onsite wages by 3-4 percent, which will impact on margins in the September quarter by 3-3.5 percent, Chairman B. Ramalinga Raju said on Friday in a conference call.

Also, the business and financial services segment continued to be “fluid”, he said.

“The direction is not clear, but we will remain invested because transformational opportunities exist,” he said.

“We have not seen any cancellations, but decision-making appears fluid in the BFSI (banking, financial services and insurance) space.”

New York-listed Satyam SAY.N which specialises in business software and offers back-office outsourcing services, reported a 45 percent rise in quarterly profit to 5.48 billion rupees ($128 million), beating a Reuters poll forecast of 5.08 billion. ($1=42.8 rupees) (Reporting by Rina Chandran; Editing by Ranjit Gangadharan)