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Market Update : 
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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Thank you, Mr. Quinteros. The next question is from the line of Mr. Sandeep Shah from ICICI Securities. Please go ahead.

Sandeep Shah – ICICI Securities

Yes, if you look at the Satyam Technologies number, it is roughly around more than $5 million and it is contributing more than 1/3rd of the additional growth in this quarter. So what has exactly happened and is it like recurring revenue or it is a onetime revenues?

V. Srinivas

Yeah, basically Satyam Technologies means as you know it is a joint venture we have formed along with TRW in those days and now it is 100% owned by Satyam. And some of the business which was earlier….and most of this business is executed by our joint venture – Venture Corporation. We have a JV with Venture and so that is executed by that. So when TRW gives us business that was earlier routed through Satyam Computers to the JV. Now it is being routed through STI to the JV. So from that point of view there is no change in the business that we are getting from TRW. It is just that it is routed through STI today rather than from Satyam Computers.

Sandeep Shah – ICICI Securities

Okay. Is it a recurring like, is there any?

V. Srinivas

Yeah. It will continue to now be in STI.

Sandeep Shah – ICICI Securities

Okay. And depreciation has increased in this quarter. So what is your sense for this figure going forward?

V. Srinivas

Sandeep this is primarily because of some of the capitalization that we have done in this quarter. It has gone up and we expect this to go up marginally over the next couple of quarters but not materially. It is kind of in line with the accretive numbers that has been increased marginally.

Sandeep Shah – ICICI Securities

Okay. And you expect the tax rate to increase in the next two quarters?

V. Srinivas

Kind of maybe marginal increase, not very material increase.

Sandeep Shah – ICICI Securities

Okay. Thanks a lot.

Operator




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