Satyam, Tech Mahindra set to have $2.2 bn revenue

HYDERABAD: Satyam Computer Services and its new owner Tech Mahindra are set to have combined revenues in the range of around $ 2.2 billion. While an immediate merger is ruled out, the two companies may be integrated two or three years down the line to have one large Tech Mahindra, a top Tech Mahindra official told employees at the ���Tech Mahindra All Hands Meet Conference��� last week.

According to him, the employee strength at Satyam is around 45,000. ���The exact tally at this point is not known but it would be around 40,000-42,000 employees, including subsidiary, they have a few subsidiaries with that and it will be a little more,��� he said.

The revenue and manpower projections assume significance, given that clients and employees exited after the defamed founder of Satyam B Ramalinga Raju confessed to fudging the firm���s books by inflating revenue and profits. The real picture on the financial position will be known when Satyam���s accounts are re-stated. Satyam���s revenue, which was around $1.8 billion, is believed to have dropped to $1.2 billion after the scam due to significant client attrition.



With Tech Mahindra���s revenue at around $1 billion, the combined revenue would be around $2.2 billion going forward. ���As always, we will be the number one in telecom. But with the acquisition of Satyam, we will also be number one in large number of other areas, including business intelligence and enterprise solutions. Obviously, this will de-risk our model and this will give us a strong suite in consulting and enterprise business solutions. Most importantly, it diversifies not only our verticals, but it diversifies our currency,��� the official said.

He, however, made it clear that he would be oversimplifying if he said that all was well with Satyam. ���There are legal cases too which we have to look at, there is restatement of accounts which we have to look at, there is an overhang resulting from the fraudulent activities of the earlier promoter which includes everyone from CBI to FERA violations. We would have to deal with government agencies and provide them with all the information. This does not impact on us or on our own management, but it is without doubt a distraction,��� he said.