The merger has catapulted the company into big league with a combined sales of Rs 400 crore. Tuesday's board meeting also approved the audited financial results for the year ended March 31, 1999 and recommended a final dividend of 18 per cent taking the total dividend to 30 per cent for the year. While the bonus and dividend announcements were in line with market expectations, Satyam witnessed profit booking at the day's high of Rs 1,453 levels.

According to Mumbai-based brokers, the immediate reaction to the results and bonus news was bout of selling leading to scrip slipping to a low of Rs 1,330 on the Bombay Stock Exchange and Rs 1,320 on the National Stock Exchange. The loss of 3.7 per cent in the stock price was accompaniedby huge volumes of 62.48 lakh shares on both the local bourses.

The merger of all the companies -- Satyam Enterprise Solutions, Satyam Renaissance Consulting, Satyam Spark Solutions -- with the parent company will be effective April 1, 1999. For the year 1998-99 the combined turnover of four companies adds up to Rs 419.91 crore with a net profit of Rs 79.93 crore.

As per the audited results, Satyam Computers has recorded 99 per cent growth in turnover to Rs 378.12 crore with net profit vaulting 143 per cent to Rs 72.80 crore. What helped buoy the net profit further was a weakening rupee. This alone saw company raking an additional Rs 15 crore. It may be noted that company's major income is from export to the tune of Rs 376.61 crore while domestic income was Rs 1.51 crore.