Mahindra Satyam, on Thursday, reported a 74 per cent drop in net profit at Rs.80 crore during the third quarter ended December 31, 2012, against Rs.308 crore registered during the corresponding period of the previous fiscal due to one-time charge of Rs.294 crore to settle the claim made by Aberdeen of the U.K.
“The good news is that we have put at rest all the litigation external to India reaching the Aberdeen claim settlement,” Mahindra Satyam Chairman Vineet Nayyar said.
Total income increased by 12.9 per cent to Rs.2,060 crore from Rs.1,869 crore in the year-ago period.
Announcing the results, Mr. Nayyar and Mahindra Satyam CEO C. P. Gurnani said the U.S. continued to be the major contributor to the business with 53 per cent while the European Union and other geographies contributed 24 per cent each.
The merger with Tech Mahindra was ‘almost ready’ and the company was awaiting the final order from the court, which called for the scheme of amalgamation in this direction, they said adding that Tech Mahindra would leverage the enterprise business expertise of Mahindra Satyam and the latter could bank on the telecom strength of Tech Mahindra.
Asked about the provisioning made for tax expenses, My Nayyar said the provision had nothing to do with the case relating to the Income-Tax Department. The notice received from the IT department was related to Rs.1,200-crore fictitious income as there were neither receipts nor liquidation of fixed deposits and this was the basis of the charge-sheet filed against the previous management, Mr. Nayyar said.
