Satyam revenue outlook not great - chairman

By Sumeet Chatterjee

BANGALORE (Reuters) - Satyam Computer Services Ltd is under stress and the near-term revenue outlook is not great, its chairman said, as the fraud-hit outsourcing firm announced a plan to send home up to 10,000 staff on reduced pay.

Satyam on Tuesday released financial figures for the first time since India's biggest corporate fraud was revealed in January, showing it has stayed profitable and sparking a surge in its shares.

But Satyam Chairman Kiran Karnik played down the euphoria, saying it was yet to take off on a sustained growth path.

"One has to understand that despite the way the media and probably the market reacted to this, the fact is the company is under severe stress," Karnik told Reuters in a phone interview, referring to the reaction to the company's financial numbers.

"It is hugely overstaffed, costs are very high, and the revenue picture in the immediate future is not that great."

Satyam, which once ranked as India's No. 4 outsourcer, had not reported results beyond the September quarter after founder Ramalinga Raju shocked investors in January saying profits had been overstated for years, putting in doubt its survival.

The company's reported numbers and client base exceeded most analysts' expectations, with Satyam shares ending the day up the maximum daily limit of 10 percent for the third consecutive day on Thursday.

Karnik said the company had to take cost cutting measures to help it turn around and boost profitability.