Mahindra Satyam on Tuesday reported a twofold jump in its profit after tax (PAT) at Rs 225.2 crore and earnings before interest, taxes, depreciation, and amortisation of Rs 120 crore on a consolidated revenue of Rs 1,434 crore, up 4.3 per cent quarter-on-quarter.
In the same period a year ago, the company earned a net profit of Rs 98 crore while its revenues were Rs 1,248 crore. The company’s headcount stood at 31,438 as on June 30, a net addition of 2,172, and has an active customer count at 220. The company’s attrition also improved to 17 per cent from 25 per cent.
“We are on the right growth trajectory. We are getting positioned in multiple market opportunities as all our service offerings are showing traction. The manufacturing vertical has shown a growth of 7.7 per cent, while the technology sector grew 9.8 per cent. In terms of geographies, the US growth stood at four per cent, Europe was at 0.3 per cent and the emerging markets grew by 12.1 per cent ,” said chief executive officer C P Gurnani.
Chairman Vineet Nayyar said the economic uncertainty may spur outsourcing. Commenting on the impact of the US credit-rating downgrade on the IT services industry, he said the impetus to send work to lower cost destinations will be even more.
“The act of a downgrade doesn’t worry me at all. In the short-terms, there will be some negative sentiment because of this. But, I would only worry if the fundamentals have changed, and that has not happened,” he said.
He also said the company was contemplating to give wage rise up to 12 per cent for its offshore employees and up to 2.5 per cent for onsite employees. He, however, did not specify any time-frame for the same.
More From This Section
Company to deregister ADSs in 2012
Mahindra Satyam said the company had decided to deregister its American Depositary Shares (ADSs) on the New York Stock Exchange in 2012, as it was unable to meet the regulatory compliance rule of the Securities and Exchange Commission.
“What was acceptable to Indian regulators is not acceptable to the US system. Consequently, we have decided to withdraw (ADSs from the US),” Vineet Nayyar, chairman of Mahindra Satyam, told journalists here on Tuesday.
He said, certain information the US regulator was looking for was unknown to the company.