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% taking the total dividend to 30% 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 BSE and Rs 1,320 on the NSE. The loss of 3.7 per cent in the stock price was accompanied by 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.

As usual, exchange rate fluctuations have helped bolster the company's income by Rs 24.27 crore. Operating profit, however, has risen 118.79 per cent to Rs 146.37 crore as the rise in expenditure has not risen proportionately. Hence, operating margins have improved from 37.48 per cent to 38.71 percent. Other income accounted for a mere Rs 32 lakh as compared with Rs 11.64 crore during the previous year. This is, of course, easily explained as the previous year's figure includes an extraordinary income of about Rs 12 crore arising from the divestment of the company's stake in Dun & Bradstreet Satyam Software.

Despite the lower other income, gross profit has risen by 86.77 per cent to Rs 146.69 crore. Gross margins have, however, declined from 41.31 per cent to 38.76 per cent. Interest and financial charges for the year were 120.62 per cent higher at Rs 26.43 crore while cash profit has grown 80.68 per cent to Rs 120.26 crore. Cash margins have declined from 35.01 per cent to 31.78 per cent. Provision for depreciation is 87.64 per cent higher at Rs 42.95 crore following the adoption of the accelerated depreciation policy last year.

Silverline profit rises 79 per cent
Mumbai: Silverline Industries' financial results for the year ending March are in line with the projections made by thecompany in January. Operating revenues have risen by 32.85 per cent to Rs 110.15 crore. However, the 12.41 per cent increase in expenditure to Rs 60.94 crore has been less than proportionate. As a result, operating profit has grown by 71.46 per cent to Rs 49.21 crore. Operating margins have improved from 34.62 per cent to 44.68 per cent and this can be attributed to greater focus on higher value-added services. Interest and financial charges have fallen by 14 per cent to Rs 3.61 crore. Cash profit has risen 65.46 per cent to Rs 50.45 crore and cash margins have improved from 34.29 per cent to 43.87 per cent.

Though there has been a 13.88 per cent rise in depreciation to Rs 7.22 crore, the company's post-tax profit has witnessed a 79 per cent growth to Rs 43.23 crore. However, it is unlikely that such a growth rate would be maintained in the current year.