Satyam Computer Services, India’s fourth-largest software services exporter, disappointed analysts after it announced a 2.2 per cent fall in net profit which was below market expectations.US-listed Satyam, which counts General Electric as its top client, posted a net profit of Rs 117 crore ($24.4 million) or diluted earnings per share of Rs 3.70 in the fiscal third quarter ended December 31. That compared with a profit of Rs 119 crore, or Rs 3.80 a share, in the year-ago period.Total income rose 16.9 per cent to Rs 521 crore from Rs 446 crore. “The results came below expectations of a net profit of Rs 127 crore and a total income of Rs 536 crore,” according to analysts.The Satyam stock fell as much as 6.88 per cent to Rs 242.25. “The market is worried about the downward revision inearnings and the pressure on margins,” said a technology analyst.The results sparked a sell-off in technology stocks. HCL Technologies, the No. 5 exporter, fell to Rs 167.40 after its second-quarter consolidated net profit fell 35.9 per cent on year, below market expectations. Infosys Technologies, the No. 2 exporter, lost 72.50 points to 4424.70, and Wipro Ltd, the most valuable software company by market capitalisation, fell by 51 points to 1466.55.Shares of Satyam have jumped by 21 per cent since end-September, outperforming a 16 per cent rise in the BSE’s infotech index.Satyam said its poor performance in the past quarter was due to low growth in orders from some clients and a large deal that was put on hold. Its October-December revenue of Rs 522 crore was lower than its guidance of Rs 525-540 crore for the quarter, the company said.
