IT services firm Mahindra Satyam today reported 15 per cent decline in profit after tax at Rs 454.12 crore for the fourth quarter ended March 2013 due to higher personnel expenses and provision for taxes. Profit for the same period in the previous fiscal was at Rs 534 crore,Vineet Nayyar chairman Mahindra Satyam said at a press conference.
The total number of employees of the company stood at 36,067 as of march 2013 with net addition of 2714. The company said attrition rate is stable at 14 per cent in the quarter under decision.
The company’s consolidated revenue stood at Rs 1,936 crore up 16 per cent year of year basis from Rs 1,666 crore,Nayyar said.
According to the statement issued by Mahindra Satyam,personnel and subcontractual expenses have gone up to Rs 1,284 crore during 2013 March quarter against Rs 1,114 crore during the same period in the previous fiscal.
The company has made Rs 75 crore towards tax provision compared to Rs 94 crore reverse tax credit in the previous period.
Mahindra Satyam 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,” Nayyar said.
Revenue for the full year 2012-13 stood at Rs 7,693 crore up 20 per cent on a year on year basis. Profit after tax was down by 11 per cent at Rs 1,164 crore during FY’13 against Rs 1,306 crore in FY’12.
“There have been upheavals globally in the economic situation. USA is coming back and the demand is expected to pick up there. At this moment,the anticipated change in the Visa regime in USA is difficult to forecast,” Nayyar said.
“The proposals put before the US Senate will have an impact on the IT industry which will be fairly significant,” he added.
Europe is still not out of the woods,he said.
MSat clocked 55 per cent revenues from USA,22 per cent Europe and 23 per cent from the Rest of the World during the 2013 March quarter.
Replying to a query,on merger with Tech Mahindra,Nayyar said they reached penultimate stage and awaiting Andhra Pradesh High Court’s nod.
“The hearings have been over. The Bombay High Court has approved it last year. We expect the AP High Court’s decision before the first week of June,” he said.
Nayyar said currently both TechM and Msat are operating as one company.
CP Gurnani,CEO,Msat said the manufacturing sector continued to perform well while the show by healthcare sector was disappointing during the quarter.
Satyam shares closed at Rs 109.20,down 0.59 per cent over previous close on BSE. “The growth from the existing customers is good form new account addition this was a spectacular quarter. We added 43 new accounts. We continue to be invited to participate in large deals,” Gurnani said,adding that the win ratio is lower than the industry average.
Analysts said Mahindra Satyam disappointed on the operations front.
Ankita Somani,Research Analyst – IT & Telecom,Angel Broking said: “For 4QFY2013,Mahindra Satyam reported net profit while disappointed on the operational front…the operational performance was below expectations as EBITDA margin declined by ~145 basis points qoq to 20.1 per cent,due to subdued revenue growth.”
The current financial year will certainly be better than the previous fiscal,Gurnani replied when asked about the current year.
The company has active clients at 385 and it has cash and cash equivalent of Rs 2,922 crore as of March 31.
Meanwhile,Mahindra Satyam has appointed Manoj Chugh as its Global Head of Business Development,it said.