Key takeaways from management meeting,
- BT business likely to be stable in the next few quarters post the contract restructurings;
- Rest of the business (non-BT) continues to do reasonably well;
- TEM (Telecom Equipment Manufacturers) business remains challenged – now a very small proportion of revenues (less than 5%);
- Margins – no meaningful offsets against wage hikes given pricing increases are unlikely in the near term.
Our channel checks suggest Satyam’s business has stabilized. However, what remains to be seen is how much Satyam can benefit from the positive trends in the industry given what Satyam has gone through and the likely supply side challenges that the company may face.