Buy call for satyam computers

Buy Satyam Computer Services with a one-year target price of Rs 440. Satyam reported a strong 8.5% qoq rupee growth aided by 6.7% rupee depreciation during the quarter. On comparing the actual revenues to the guidance after re-basing at Rs 40 (assumed rate for Q1 guidance), it is clear that company has missed the guidance by 1.2-1.7%. Other income was surprisingly higher 44% qoq due to lower than expected forex loss of Rs 363 million reported by the company. This, along with marginally lower tax provision, led to a net profit jump of 17.3% qoq.