TRADING CALL ON OCTOBER 20

Satyam Computer Services Ltd (Q2 FY09): ‘Quarter in-line;

remain positive’ CMP Rs266 , BUYTarget price Rs300,

Upside 12.9%


Revenue growth of 2.3% qoq in dollar terms was in-line


Healthy growth was witnessed in ADM services, TIMES vertical,

US region and amongst Top clients OPM decline of 100 bps

qoq was on expected lines; lower forex loss pushes net profit

growth Employee addition weaker than expected; FY09 gross

hiring target lowered significantly .More than expected

downgrade in revenue growth outlook but earnings growth

revised upwards in dollar terms .

Short-term negatives likely in the price; remain positive .