Wednesday, September 29, 2010



Audited Financial results

for FY 2009 and FY 2010 
UPDATE DT 30.SEP. 2010

Hyderabad, September 29, 2010: Mahindra Satyam today announced the audited financial results for FY 2009 (y/e March 31, 2009) and FY 2010.
With this a Big Suspense regarding its current Financials is mostly cleared. However, since the declared results are only upto Y/E 31.03.2010, they are yet to represent the current states as at the end of Q1 amd Q2 of FY11.
The future is of course bound to be an upward Journey, from now, with the Mahindras firmly in the saddle and with M'Satyam having largely come out of its troubled Past.

Key Highlights
The key financial numbers are as below:
Revenue was Rs 8812.6 Cr and Rs  5481.0 Cr in FY 09 and FY 10 respectively.
Loss after tax was Rs 8176.8 Cr and Rs 124.6 Cr in FY 09 and FY 10 respectively.
Due to the restatement efforts and the extent of the fraud, there are certain exceptional items in the financial statements.
Exceptional items were Rs 7992.0 Cr and Rs  416.9 Cr in FY 09 and FY 10 respectively.
Loss after tax adjusted for exceptional items was Rs 184.8 Cr for FY  09 and Profit after Tax was Rs 292.3 Cr in FY 10.
Cash and bank balances were Rs 2176.8 Cr as on 31st March 2010.

The loan balance as of 31st March 2010 was Rs 42 crores.
For FY10, Mahindra Satyam has reported an Ebitda margin of 8.3% before exceptional items and 1% after exceptional items. The margins are expected to go up with further accretion of clients.
The results for Q1 and Q2 may show some more improvement in all parameters. The profit margins for Q1 and Q2 will be watched with interest by the market as the present margins are unlikely to satisfy the market.
The merger process with Tech Mahindra may begin after Satyam announced its first and second quarter results for the current fiscal on 15 November and it may take some 9-12 months for the merger process to be completed.
However, it is not yet decided whether Satyam should merge into Tech Mahindra or vice versa.
Further excerpts from their Press conference on 29thSep,2010 are as follows :
….From May 7, 2009, when we were legally allowed to access the company records, to the period we are talking (up to March 31, 2010), we added 44 new clients. In terms of geographies, we have had success in all the three predominant markets – the US, Europe and APAC or emerging markets. One of our largest losses was in financial services and one of our major additions was also there. We added large accounts in North America, we have also added one of the largest banks in Germany. As of March 31, 2010, there have been additions of new clients in manufacturing and health care. In the public sector, there has been a fair amount of traction
….. One of the most prestigious projects in the world right now is the UID project and we are part of that.
….. We are one of the first few in the world to deliver a cloud-based application from one central location to all stadia and all locations for FIFA. …..We’re 27,000 employees from the earlier 45,000. We’re actively going to all the business schools and actively hiring through our ‘Buddy Referral Programme’.
……The company is generating cash. We are coming close to the average growth of the industry. I think it will take another one-and-a-half years.
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