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Satyam Computer Q2 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 8:42 PM ET November 12 2008


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But Srinivas if I look at deposit account for the last 4 quarters that number has remained absolutely flat and most of the incremental cash flows have been parked in current accounts and this is not something is this quarter trend. Would you highlight the reasons for it?

V. Srinivas

No basically what will happen is this amount will be basically in different countries and then we will be bringing them to India based on the needs. Basically some of them are in overnight deposits and all that. So now, we have kind of placed them into normal term deposits. So next quarter onwards, we will see that as part of the deposits.

Kawaljeet Saluja -- Kotak Equities

So would your yields on excess cash go up because your yields are very low compared to the industry? It is just 5.3% whereas the going yield was 9% to 10%.

V. Srinivas

Yeah right now our yield is roughly around 8% or so and we expect that to go up because currently the overall yield on the deposit rate in the past one month or so also has gone up. So everybody will be benefited by that.

Kawaljeet Saluja -- Kotak Equities

Okay and a second, you know given the fact that the stock is now more or less trading at valuation which does not imply any growth in entirety. So, what will make you consider a buy back of stock?

Ramalinga Raju

Well it goes without saying that we constantly evaluate as to what kind of use we can put our liquid funds positions to, and there are many options in front of us particularly around acquisitions, around possibility of a buy back, around possibility of special dividend so on and so forth. We believe that there are enormous opportunities particularly at this stage in acquisitions and then therefore it is always a very difficult decision to make when it comes to having to buy back. All I can say is that we are well in tune with this pattern and we would be taking decisions as we go forward weighing various possibilities carefully.

Kawaljeet Saluja -- Kotak Equities

Right. And Srinivas are there any specific reasons why you have taken a loan of $15 million in Satyam standalone entity?

V. Srinivas

No, no Kawaljeet that is basically not a loan taken. It is basically related to Caterpillar MRCA business acquisition. As per the acquisition agreement we have paid $10 million in cash and balance is due over the period. And as per the agreement we have to give them a promissory note for the future payments, so that under the GAAP requirements that promissory note needs to be qualified as unsecured loan. So that is why it is there in the unsecured loan.

Kawaljeet Saluja -- Kotak Equities

Okay and, just to get it right, has there been any revenue contribution from the Caterpillar acquisition or the analytics division acquisition in this particular quarter?

V. Srinivas

No, not I think the contribution will start from Q3 both for S&V and MRCA.

Kawaljeet Saluja -- Kotak Equities




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