Mahindra Satyam Q4 net down by 15 per cent, declares 30 per cent dividend

Mumbai: Software services provider Mahindra Satyam's net profit declined by 15 per cent to Rs 454.12 crore for the fourth quarter ended March 31, 2013.


Net profit stood at Rs 534.21 crore in the same period last year.

Income from operations was, however, up 16.2 per cent to Rs 1,935.73 crore in the reported quarter as against Rs 1,665.84 crore in the January-March 2012 quarter, Mahindra Satyam said in a statement here.

The company has declared 30 per cent dividend, signalling a complete turnaround after the January 2009 accounting scam involving its previous owner Ramalinga Raju.

"The turnaround of Mahindra Satyam is symbolically and practically complete. The merger (with Tech Mahindra), which is in its penultimate phase, will open a new chapter for the company. We thank all stakeholders for supporting us during this crucial phase," Mahindra Satyam Chairman Vineet Nayyar said.

Tech Mahindra took over reins of the scam-tainted Hyderabad based Satyam Computer in April 2009 and re-branded it as Mahindra Satyam.

The company's total headcount stood at 36,067 as of March 31, 2013, a year-on-year net addition of 2,714 people. Its rate of attrition in the fourth quarter was stable at 14 per cent, the statement said.

Mahindra Satyam's active number of clients stood at 385, while the cash and cash equivalent on its books was at Rs 2,922 crore as of March 31, 2013.

"The large deal win during this quarter (Q4) is of particular significance and vindicates our investment of time and effort in this area. We are hopeful of similar wins, which will help us accelerate our growth in the ensuing quarters," Mahindra Satyam Chief Executive C P Gurnani said.

For the fiscal ended March 31, the IT firm's net profit was down about 11 per cent to Rs 1,164.32 crore, while income from operations was higher by 20.3 per cent at Rs 7,693.48 crore over the previous fiscal (FY12).

Meanwhile, Mahindra Satyam has appointed Manoj Chugh as its Global Head of Business Development, it said. Shares of the company closed down 0.59 per cent at Rs 109.20 on the BSE.