Mahindra Satyam posted a net profit of Rs 278 crore in the September quarter as against Rs 238 crore in the same quarter last year, showing a growth of 17 per cent. The consolidated revenues were at Rs 1,938 crore, a year-on-year growth of 23 per cent.
“We have started signing large deals. In Singapore we are selected by an oil and gas company and by a large regulator. The deal flow has improved dramatically. We also signed a deal in Europe for a retail information system,” C.P. Gurnani, Chief Executive Officer of the company, said.
“Despite a wage hike during the quarter, we could achieve an EBIDTA (Earnings before interest, depreciation, taxes and amortisation) of 21.5 per cent,” he said.
ED charges
Gurnani said the company would challenge the Enforcement Directorate order (of attaching companies properties) as there was no money in its kitty when it took charge. “We never had an access to the (questionable) money. That we had to borrow Rs 450 crore in the first month for payment of salaries is a testimony to our claim,” he said.
“We are working on it (challenge petition). We will file it,” he said.
Infra investments
The board, which approved the results, has approved a plan to invest Rs 500 crore at its Nagpur, Bhubaneswar, Visakhapatnam, Chennai and Hyderabad facilities. “We are going to spend Rs 30 crore every month on developing infrastructure. We are looking at adding 3,500 seats through this,” he said.
The company saw this as a medium to reduce the effective tax rate. “We could reduce the rate to 25 per cent this quarter as against 27 per cent. This is a result of increase in SEZ activity,” Vasanth Krishnan, Chief Financial Officer, said.
The US market continues to drive growth with an increase in 4.4 per cent (year on year). It is followed by Europe with 4.2 per cent and rest of the world with 1 per cent.
HR additions
The company added 791 employees during the quarter, taking the total staff strength to 36,787. Its attrition improved to 13.1 per cent (14.1 per cent). It has cash reserves of Rs 3,062 crore.
On the merger, Vineet Nayyar, Chairman, said all but the nod from Andhra Pradesh High Court was ready for the merger.
The stock ended today at Rs 107.55, up 0.42% on the BSE.
kurmanath.kanchi@thehindu.co.in