Mahindra Satyam, erstwhile Satyam Computer Services Ltd., reported lower net profit for the fourth-quarter, both on consolidated and stand-alone basis, on Indian GAAP basis, despite increase in income.
Consolidated Results
The company reported a fourth-quarter consolidated net profit, after exceptional items and minority interest, of Rs.454.12 crore or Rs.3.85 per share. In the preceding quarter, the company reported a net profit Rs.534.21 crore or Rs.4.53 per share. Net profit and earnings for the quarter fell by 15 percent.
Consolidated results for the quarter included a one-time gain of Rs.133.96 crore, compared with a gain of Rs.109.40 crore under exceptional items, towards expenses related to provision for contingencies relating to various disputed matter less provision reversal for impairment losses in subsidiaries.
Excluding exceptional items, net profit for the quarter was Rs.396.24 crore, up by 24 percent from the Rs.320.16 crore in the year-ago quarter.
Quarterly net income from operation amounted to Rs.1,935.73 crore, up by 16 percent from the Rs.1,665.84 crore in the corresponding quarter of the preceding year. Income from others touched Rs.72.32 crore, compared with Rs.72.67crore in Q4FY12.
Income for the quarter from 'Information Technology Services' segment totaled Rs.1,889.58 crore, compared with Rs.1,634.89 crore last year, an increase of 16 percent, while that of 'BPO' stood at Rs.60.96 crore, up by 48 percent from the Rs.41.29 crore a year-ago.
For the fiscal year, the company posted a consolidated net profit of Rs.1,164.32 crore, compared with Rs.1,306.06 crore in 2012, reflecting a 11 percent decline. Total income, including other income, rose by 18 percent to Rs.8,011.11 crore from the Rs.6,814.46 crore a year ago.
Before exceptional items, profit for the year totaled Rs.1,324 crore, up by 11 percent from the Rs.1,197 crore last year, the company said.
Stand-alone Results
For the quarter ended March 31, Mahindra Satyam reported that its stand-alone net profit, after making allowance for "exceptional items," was Rs.266.67 crore or Rs.2.25 per share, lower by 40 percent than the Rs.446.39 crore or Rs.3.79 per share in the year-ago quarter.
Results for the preceding year quarter included a one-time gain of Rs.51.82 crore, under exceptional items, towards expenses related to provision for contingencies relating to various disputed matter less provision reversal for impairment losses in subsidiaries.
Excluding exceptional items, net profit for the quarter stood at Rs.365.48 crore, up by 31 percent from the Rs.278.38 crore in Q4FY12.
Net income from operations for the quarter rose by 15 percent to Rs.1,787.48 crore from the Rs.1,550.54 crore for the same period last year, while it reported other income of Rs.75.98 crore, compared with Rs.45.34 crore last year.
For the fiscal year, the company's stand-alone net profit nearly halved to Rs.446.69 crore from the Rs.901.88 crore last year. Total income, including other income, increased by 17 percent to Rs.7,404.78 crore from the Rs.6,355.25 crore a year-ago.
Results for the year included a one-time charge of Rs.294.04 crore, compared with a gain of Rs.51.82 crore, under exceptional items,
As on March 31, the consolidated headcount was 36,067, a year-on-year net addition of 2,714, while attrition was stable at 14 percent.
Mahindra Satyam Chairman Vineet Nayyar said, "The turnaround of Mahindra Satyam is symbolically and practically complete. The merger which is at its penultimate phase will embark a new chapter for Mahindra Satyam. We sincerely thank all stake holders for supporting us during this crucial phase."
CEO C.P. Gurnani commented that "the large deal win during this quarter is of particular significance and vindicates our investment of time and effort in this area. Our preparedness with Connected Solutions for a Connected World remains positive and we are hopeful of similar winds, which will help us accelerate our growth in the ensuing quarters."
At the BSE, Satyam Computer Services closed Thursday's trading at Rs.109.20, down Re.0.65 or 0.59 percent on a volume of 323,000 shares.
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