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 .