The ghost of the past has been exorcised, says Nayyar
Mahindra Satyam (erstwhile Satyam Computer Services Ltd.) beat expectations by registering Rs.352 crore net profit during the first quarter ended June 30, 2012, up 56.4 per cent over Rs.225 crore recorded during the corresponding period of the previous fiscal.
Consolidated revenues grew to Rs.1,880 crore from Rs.1,666 crore sequentially in spite of uncertainties in the global economic situation. “Uncertainty is not unfamiliar to us (Mahindra Satyam) and we have responded in a fairly better manner,” Chairman Vineet Nayyar said.
“The ghost of the past has been exorcised and we have the competitive edge, healthy and willing to compete,” he said. The attrition rate declined to 13.5 per cent from 17.3 per cent in the year-ago period and the total headcount stood at 35,996.
The EBITDA (earnings before interest, tax, depreciation, amortisation) margins had gone up by 417 basis points to Rs.408 crore. The company had witnessed a marginal de-growth in Asia Pacific and European markets, but sounded optimistic about making up for the loss in newer markets.
Mr. Nayyar said claims of some companies that allegedly gave loans to the previous management were under consideration as were pending issues such as the Income-tax case. “The issues pertaining to the class action suits are, by and large, resolved,” he said. Asked about the outlook for the coming quarters, chief executive officer C. P. Gurnani was guarded in his reply claiming that the company, which faced a “super typhoon’’ in the past, was geared up to face the storm. “There is a slowdown in government and defence spend. We are prepared to face such ups and downs,” he said.
He said Mahindra Satyam was about to close on three major deals of the 20 deals even as the company was committed to its promise on hiking staff wages. “It is a dynamic situation and we will take a decision next week,” he said.