Marking the completion of the three-year transformation and recovery, Hyderabad-based global consulting and IT services provider Mahindra Satyam on Thursday reported a consolidated net profit of Rs 534.21 crore for the quarter ended March 2012, compared to a net loss of Rs 326.98 crore in the corresponding quarter last year.
Sequentially, net profit for the quarter under review showed a 73.20 per cent growth, compared to Rs 308.43 crore in the quarter ended December 2011.
The company’s consolidated revenue for the fourth quarter rose 21 per cent to Rs 1,665.84 crore, compared to Rs 1,375.36 crore in the corresponding quarter of the previous quarter.
Ebitda (earnings before interest, tax, depreciation and amortisation) margins improved by 132 basis points at 17.5 per cent to Rs 291.6 crore sequentially, from 16.2 per cent (Rs 278.1 crore) in the quarter ended December 2011, on the back of considerable improvement in cost management and delivery, among others, according to Mahindra Satyam Chairman Vineet Nayyar.
Given the global economic turmoil, these financial results were good, he said. “With the trauma of 2009 firmly behind our back, we will now have to deliver quarter after quarter,” he said. The company would want to be in the top three in the chosen verticals in the course of next three years, Nayyar added.
The company maintained that the US has been good in contributing to the business growth, while Europe is stable. Geographically, the US has contributed 51 per cent to the top line, followed by Europe with 25 per cent. The remaining, 24 per cent, came from other regions, including Asia.
On the human resources front, the company added 1,073 associates during the quarter ended March 2012, taking the total headcount to around 34,000. The attrition rate improved to 15 per cent during the quarter from 22 per cent in the year-ago period. The company spent about Rs 64 crore, largely on buildings and added 1,400 seats on account of the expansion of office infrastructure, according to Vasant Krishnan, chief financial officer of Mahindra Satyam.
Of the 235 active customers, the top 20 contributed 55 per cent to the company’s total revenues with an increase of 19 per cent in terms of their contribution to the total revenues, the company said.
The company revenues during the year ended March 2012 grew 24 per cent to Rs 6,395.56 crore, compared to Rs 5,145.06 crore in the previous financial year.
