MAHINDRA SATYAM - FIRST QUARTER RESULTS - Q1 FY 2013 - REVENUES UP 31%YoY; PAT UP 56.4%YoY

MAHINDRA SATYAM

(SATYAM COMPUTER SERVICES LIMITED)

FIRST QUARTER RESULTS

Q1 FY 2013

MAHINDRA SATYAM (Satyam computer services Limited) has reported excellent improvement in its performance in the quarter ending June, 2012. The High Lights of its unaudited Consolidated financial Results (Under Indian GAAP)are as below :

Financial Highlights

Ø  Consolidated Revenues at Rs 1880 crore, up 31% YoY

Ø  EBITDA at Rs 408 crore, margins at 21.7%, up by 417 bps QoQ

Ø  PAT at Rs 352 crore, as compared to Rs 225 crore in the previous year

Ø  EPS was Rs 2.99 per share in Q1

Financial Highlights in USD (per convenience translation)

Ø  Q1 Consolidated Revenues at USD 342 million

Ø  EBITDA at USD 74 million

Ø  PAT at USD 64 million

Other Highlights:

Ø  Total headcount stood at 35,996 as of June 30, 2012, a net addition of 2,643 QoQ

Ø  Attrition improved to 13.5% in Q1FY13 as compared to 17.3% in corresponding quarter of the last year

Ø  Active clients totalled stood at 372 on a consolidated basis

Ø  Cash and cash equivalent stood at Rs 3,058 crore as of 30th June 2012

Vineet Nayyar, Chairman, Mahindra Satyam, said, “With this quarter, we have successfully ended our 3-year transformational journey, recording progress on the back of strong fundamentals, focus and investments. Global business realities continue to be unpredictable. However we are confident of taking forward our momentum.

” Speaking on the occasion, CP Gurnani, CEO, Mahindra Satyam, said, “We compete in the marketplace today with investments in services, markets and our differentiators. Our plans to convert some of these bullets into cannonballs is a reflection of our performance this quarter.”

Key Wins

Ø  Won a five-year multi-million dollar engagement with a leading low-cost airline in the Asia-Pacific (APAC) region to provide Infrastructure management support

Ø  Chosen by a leading Middle East and Africa, real estate developer for implementation for Oracle and Hyperion suites

Ø  Selected by a world leader in card-based, self-service transaction systems, security products and customer service company to provide engineering services for ATM sub modules

Ø  Appointed to assist a leading Middle East-based investment group has chosen Mahindra Satyam for its Oracle R12 implementation

Ø  Awarded a multi-million dollar contract by a worldwide leader in software, services and solutions in infrastructure management and Consulting & Enterprise solutions service line

Operational Highlights

The merger of Tech Mahindra and Mahindra Satyam, announced on March 21st, 2012, is progressing on schedule. During the quarter, Mahindra Satyam’s shareholders overwhelmingly approved the merger with Tech Mahindra in a meeting conducted on June 8th.

Partnerships

Mahindra Satyam announced a global alliance partnership with Galorath Inc., a leading provider of estimation solutions, called the SEER solutions. The partnership will focus on the “SEER for Manufacturing” solution in order to provide its Should Costing methodology for cost modeling and benchmarking to discrete manufacturing companies across the aerospace, industrial, energy and automotive industries.

Enhanced its existing relationship with Symantec Corporation to jointly improve smart grid network security, which would enhance Mahindra Satyam’s ability to deliver secure and effective smart grid services to utilities globally.

Partnered with Oxygen Finance to market Oxygen’s cloud-based Accelerated Payment system, which enables organizations to speed up settlement of supplier invoices in exchange for additional income.  This strategic initiative is part of Mahindra Satyam’s drive to build its non linear business and create added value for customers.

Mahindra Satyam, Tech Mahindra and CA Technologies entered into a global partnership, through completion of a Global Framework Agreement (GFA). The partnership facilitates provision of shared and managed services to new and existing customers through a joint, strategic approach. Further, Tech Mahindra and Mahindra Satyam established the Mahindra CA Research centre at Pune which will enable co-innovation and delivery of joint offerings.

Infrastructure

Mahindra Satyam announced it has established an exclusive delivery center for Aerospace and Defense in Toulouse, France. This is a part of the company’s larger strategy of expanding its European footprint by focusing on strengthening relationships with regional Aerospace and Defense businesses. It is Mahindra Satyam’s second such investment after setting up its first dedicated Aerospace centre in Hamburg, Germany in 2008. The new centre is expected to ramp-up operations and create opportunities for local talent in Engineering, Information Technology and Communications domains.

During the quarter Mahindra Satyam inaugurated its Oracle Support Center at Johannesburg. The centre will provide support for JD Edwards solutions primarily for its African clients.

Mahindra Satyam announced the opening of its new delivery centre in Fargo, North Dakota. This near-shore centre will be offering innovative solutions in Business Processes and Infrastructure Management Services sector and IT Services. Mahindra Satyam will share space with Cargill’s Global Business Services Center in Fargo.

New Product launches

During the quarter Mahindra Satyam launched the Oracle Campus Solution offering on Cloud for higher education institutions in Malaysia. This is first time such a complete cloud-based service for student recruitment, enrollment, administration and to student financial information management is offered in the country.

Mahindra Satyam launched the Structural Testing Analysis & Measurement of Projects (STAMP), an Innovative Structural Quality Service Powered by CAST. This new offering aims at analyzing structural quality of the application stack, delivering higher performance, greater reliability and increased security to the customers as well as reducing underlying technical debt.

Consolidated P&L Summary       

Consolidated P&L Summary	Quarter Ended		Growth YoY	Qtr Ended	Growth QoQ
	30-Jun-12	30-Jun-11		31-Mar-12
Revenues	1,880	1,434	31.10%	1,666	12.80%
C&B cost - Personnel and Sub Con	1,216	1,008		1,114
Operating Expenses	256	213		261
EBITDA	408	213	91.70%	292	39.80%
EBITDA Margins	21.70%	14.80%		17.50%
Other Income	134	98		73
Depreciation / Amortisation	49	38		42
Interest and Financing Charges	3	5		3
Exceptional Items	-	-		-109
Profit Before Tax	489	268	82.20%	430	13.80%
Provision for Tax	133	43		-94
Profit After Tax (after Minority Interest)	352	225	56.40%	534	-34.10%
EPS - Rs/Share for the Quarter	2.99	1.91		4.54

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MAHINDRA SATYAM - QTRLY RESULTS - Q3 FY 2012 = 3rd Q/E DEC, 2011 - PAT UP 424% YoY; REVENUE UP 34% YoY

MAHINDRA SATYAM

(Satyam Computer Services Limited)

NSE Symbol        SATYAMCOMP

Mahindra Satyam Q3 PAT up 424% YoY;

Revenue up 34% YoY

Q3 PAT up 29% QoQ at Rs 308 crores; 

Revenue up 9% QoQ at Rs 1718 crores

Mahindra Satyam  announced its unaudited financial results under Indian GAAP for the Third quarter ended December 31, 2011, reflecting progress in its continuing focus on operational efficiencies. 

·         Consolidated Revenue was INR 1718 crores, up 9% QoQ, up 34% YoY.

·         EBITDA was INR 278 crores up 15 % QoQ.

·         EBIDTA Margins expand by 87 bps QoQ to 16.2%

·         Profit After Tax was at INR 308 crores versus Rs 238 Crores in Q2, up 29% QoQ, 424% YoY

·         EPS was at Rs. 2.62 in Q3 FY12 versus Rs. 2.02 in Q2FY12

Other Highlights

·         Total headcount stood at 32,280 as of December 31, 2011, a net addition of 188 QoQ

·         Attrition was stable at 16% in Q3FY12 as compared to 25% same time, last year

Vineet Nayyar, Chairman, Mahindra Satyam, said, "We continue on our path of building the organization and improving our operating metrics, in the face of some headwinds on the economic front."

Speaking at the occasion, CP Gurnani, CEO, Mahindra Satyam, said, "Our 3-pronged approach to the market through vertical, regional and service-line penetration coupled with effective portfolio management focus is showing consistent results in this changing environment. Investments into emerging areas such as Mobility, Cloud and Security Solutions should help us accelerate, as we complete the initial 3 year transformation journey".

Key wins:

Ø  In addition to new partnerships, Mahindra Satyam also announced the following key wins during the quarter gone by,

Ø  Won an Oracle Payroll Implementation and support order from a leading North American Transportation company

Ø  Engaged by a leading Regional development bank in Asia for implementation of its Enterprise financial solution

Ø  Chosen by a Top speciality retail major in North America for implementation of Oracle retail

Ø  Won a multi-year / multi-million dollar project with a key client in Transportation Engineering. This new win not only includes retaining current scope of work but also has led to additional business in new areas 

Partnerships

Ø  Mahindra Satyam Signed a MOU with Kaspersky Lab. Under the MOU Kaspersky Lab, along with Tech Mahindra and Mahindra Satyam will leverage their strengths in security products and services to develop joint security solutions in the areas of Mobility and Endpoint Security and Cloud Security Services

Ø  Saab India Technology Centre inaugurated in Hyderabad. The Saab Technology Centre (SITC) will form a bridge between India and Sweden. The aim of the Centre is to support the internal operational excellence and optimization initiatives within Saab, while also supporting Saab to expand in the Indian market

Ø  Launched Workspace-as-a-Service (WaaS) solution which leverages technology from Citrix Systems, Microsoft and Liquidware Labs. WaaS provides innovative user profiling and assessment methodology in the workspace virtualization area

Recognition

Ø  The company was named as 'Systems Integrator of the Year' at CNME ICT Achievement Awards 2011 which was held in Dubai. The award was given in recognition of the company's excellence in delivering projects on time and on budget and also ensuring that the end-user organization gets the technology it needs not just for the present but also for the long term

Ø  Mahindra Satyam won the EMC 2012 Partner Innovation Award for its outstanding Industry Solution for Financial Services – ProFinA, at the EMC Partner Conference at Momentum Berlin on October 31, 2011. This award recognizes excellence and innovation in a select group of partners who develop solutions based on EMC offerings for the Financial Services industry (Banking, Insurance, Investment Banking & Capital Markets) that help customers drive business and operational efficiencies, manage compliance issues, and enhance customer centricity.

Ø  Becomes SAP® Business ByDesign™ Solution Reseller

Ø  Mahindra Satyam is now authorized to market, sell and deploy SAP Business ByDesign as well as offer additional services. These additional services may include back office services, consulting, change management, or data migration. SAP® Business ByDesign™ is a fully integrated business management solution dedicated to companies in the small and midsize enterprise (SME) market.

Financial Summary (in Rs mn)

Consolidated P&L Summary :: Q3FY12  :: Q2FY12 :: Q/Q Grth % :: %age to Revenue

Ø  Revenue      :: 17,181  ::  15,777  ::           8.9% ::  100.0%

Ø  C&B cost - Personnel &Sub Con  ::  11,503  ::  10,502  ::  9.5%  ::  67.0%

Ø  Operating Expenses  ::  2,897  ::  2,858  ::  1.4%         16.9%

Ø  EBITDA        ::  2,781  ::  2,417  ::  15.1% 16.2%

Ø  EBIDTA Margins  ::  ::   ::  16.2%   ::  15.3%                  

Ø  Other Income   ::  1,513  ::  968 ::   56.4%         8.8%

Ø  Depreciation / Amortisation  ::  385  ::  396   ::   -2.8%  ::  2.2%

Ø  Interest & Financing Charges   ::  27  ::  20  ::  32.4%   ::  0.2%

Ø  Profit Before Tax   ::  3,881  ::  2,968  ::  22.6%

Ø  Provision for Tax   ::  790  ::  578  ::  36.6%   ::  4.6%

Ø  Profit After Tax      ::  3,084  ::  2,382  ::  29.4% 17.9%

Ø  EPS - Rs/Share for the QTR  ::  2.62  ::  2.02   ::  

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MAHINDRA SATYAM = RESULTS FOR = Q4 FY 2011 = FY 2011 = IMPROVING RESULTS

Mahindra Satyam

Triggers Growth Phase with Increased Q4 revenue

Mahindra Satyam, a leading global Consulting, IT and Business services provider announced its consolidated financial results under Indian GAAP for the fourth quarter and year ended March 31st, 2011.

Financial Highlights for the Quarter ended March 31, 2011:

• Consolidated Revenue was INR 1,375 crores, up 7.5% QoQ
• EBITDA before exceptional items was INR 178 crores
• Profit After Tax (before exceptional items) was INR 245 crores, up 118% QoQ
• The extraordinary item pertains to the Class Action settlement reached during quarter
• EPS (before exceptional items) was Rs 2.08 per share in Q4
• PAT (after exceptional items) was INR  -327 crores
• EPS (after exceptional items) was Rs -2.78 per share in Q4

Financial Highlights for the year ended March 31, 2011:

• Revenue was INR 5,145 crores, down 6.1% YoY
• EBITDA before exceptional items was INR 455 crores
• PAT (before exceptional items) was INR 494 crores, up 69% YoY
• EPS (before exceptional items) was Rs 4.2 per share For FY11
• PAT (after exceptional items) was INR -147 crores
• EPS (after exceptional items) was Rs -1.25 per share for FY11

Other Highlights

• Our total headcount stood at 29,266 as of March 31, 2011, a net addition of 434 for the quarter and 1,729 for the year.
• During the quarter Active Customer count stood at 230
• Attrition down to 22% in Q4 as compared to 25% in Q3FY11

Vineet Nayyar, Chairman, Mahindra Satyam, said, “This year has been a very satisfying one, given the impressive progress we made on various fronts such as minimizing the legal overhang, fortifying governance mechanisms, and restoring customer and employee confidence”. He also added – “Q4 is yet another quarter that demonstrated continuing progress on Growth, operational efficiencies, high delivery standards and investments into capability building."

Speaking at the occasion, CP Gurnani, CEO, Mahindra Satyam, said, “At the end of the second year of our 3-year journey, we are very pleased with our achievements so far. Throughout the last year, we had many high points to cherish; new engagements, new logos, better than ever appreciation for our work and acknowledgement for our capabilities by customers and analysts”.


Looking forward, he adds – “We are acutely aware of the challenges that lie ahead in this transformation journey. Accelerating profitable growth and building capability to deal with the scale are our key focus areas. Our three-axes focus on Verticals, Geographies and Competencies continue, along with two-in-a-box customer centric engagement model would continue.”  

Key wins :

Mahindra Satyam continues its growth trajectory with multiple deal wins during this quarter.

•  Roche, a global life sciences major headquartered in Europe, partnered with Mahindra Satyam for their IT lifecycle support services   
• Qatar University selected Mahindra Satyam for Oracle EBS R12 implementation

In addition Mahindra Satyam announced many key deals during year that include

• Strategic partnership with BASF IT Services to enhance BASF’s capacity to provide managed services for the company’s extensive installed base of SAP, messaging, groupware as well as user administration
• SAP ERP implementation contract by Insurance Regulatory and Development Authority (IRDA)
• Multi-million, multi-year contract from Aspire Zone Foundation, Qatar. The foundation will also utilize Mahindra Satyam’s expertise in event and venue management technologies as part of its ambitious sports event and venue management solution roadmap

Operational Highlights Delivery

• Mahindra Satyam established  a Windows Azure Center of Excellence (CoE) in partnership with Microsoft to provide Azure consulting, development and migration services to enterprise customers transitioning towards cloud
• Launched of Delivery xPress - a service delivery framework for accelerated service delivery 
• Launched a single-window ‘Art-to-Part’ engagement model for partners in Aerospace and Defence. This partnership model covers both design and manufacturing areas to provide a seamless engagement experience for partners, covering the complete product development lifecycle including after-market services
• Mahindra Satyam BPO announced Partnership with Direct Channel Holdings (Pty) Ltd. Both the companies will exclusively co-operate in unlocking BPO (business process outsourcing) and KPO (knowledge process outsourcing) opportunities in Sub-Saharan Africa

Infrastructure

• Mahindra Satyam commenced SEZ operations at Hyderabad, India. The SEZ is spread across 26 acres, will have a built up area of 4,00,000 square feet. The first phase of the campus is now operational and will seat around 5,000 associates
• Mahindra Satyam achieved CMMI Level 5 Version 1.2-Development model certification for its development centres at Bangalore, Chennai and Pune. The assessment led by KPMG as per the SCAMPI methodology evaluated Mahindra Satyam on stringent parameters including implementation of Process Performance Models

New appointments

• Mr. Sriram Papani as Senior VP & Global Head, Enterprise Business Solutions. He re-joins the Mahindra Satyam family to handle some key responsibilities including partner relationship management, fostering leadership within the organization to sustain growth and to incubate and nurture emerging competencies
• Kunihiko Higashi appointed as Country Manager, Japan. In his new role, Kunihiko Higashi will be responsible for spearheading the overall operations, including sales, marketing, professional services and support. He will drive the company’s revenue and market share growth through the implementation of aggressive sales and marketing strategies and building the company’s channel programs in this market
• Mr. Srirama Srinivasan appointed as Vice President – Healthcare & Life Sciences. His core focus areas will be working on growing business in USA and Latin America for Mahindra Satyam.  Srirama has 23 years IT industry experience with focus on Sales and Practice Management & Development

References and Recognition

• Mahindra Satyam featured in the ‘Challengers’ category in the report titled “Magic Quadrant for SAP ERP Implementation Service Providers, North America” published by Gartner
• Mahindra Satyam featured in “The Forrester Wave™: Global IT Infrastructure Outsourcing,Q1 2011”.
• Was profiled in a Gartner Research report “Who's Who in Business Process Management Consulting and System Integration”,
• Zinnov acknowledged Mahindra Satyam as leader in providing automotive engineering services. The practice has been ranked in “Leadership Zone” by Zinnov in their annual Global Service Provider Rating (GSPR) 2010-2011
• Mahindra Satyam BPO honoured as ‘India’s Most Customer Responsive BPO Company’ at the ‘AGC Networks Customer Responsiveness Awards 2010’
• Announced as a Winner in 2010 NOA Awards: ‘BPO Contract of the Year’. Mahindra Satyam wins prestigious industry award in recognition of its BPO work, at 7th Annual NOA Awards Ceremony in Central London
• Won Oracle APAC FY10 OPN Enterprise 2.0 Partner of the Year Award

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