Mahindra Satyam, formerly Satyam Computer Services Ltd., reported a significant drop in its net profit, on Indian GAAP basis, both on consolidated and stand-alone on one-time charge.
Consolidated Results
As per Indian GAAP, the Hyderabad-based company reported a consolidated net profit, after exceptional items and minority interest, for the third-quarter of Rs.79.98 crore or Re.0.68 per share, plunged by 74 percent from the Rs.308.43 crore or Rs.2.62 per share in the year-ago quarter. On a sequential basis, profit for the quarter declined by 71 percent.
Consolidated results for the quarter included a one-time charge of Rs.294.04 crore, under exception items, towards expenses related to settlement of disputed matters with Aberdeen Global, Aberdeen Asset Management and its subsidiaries and reversal of provision for contingencies.
Excluding exceptional items, profit for the quarter stood at Rs.374 crore, up by 21 percent year-on-year and 35 percent sequentially, the company said.
Quarterly net income from operation amounted to Rs.1,939.53 crore, compared with Rs.1,718.08 crore in the corresponding quarter of the preceding year, registering a 13 percent growth. Income from "others" touched Rs.111.08 crore, compared with Rs.151.27 crore in Q3FY12.
Income for the quarter from 'Information Technology Services' segment totaled Rs.1,867.10 crore, while that of 'BPO' was Rs.84.41 crore.
Stand-alone Results
For the quarter ended December 31, 2012, Mahindra Satyam reported that its stand-alone net profit, after making allowance for "exceptional items," plummeted by 83 percent to Rs.50.89 crore from the Rs.294.32 crore in the year-ago quarter.
Stand-alone results for the quarter included a one-time charge of Rs.294.04 crore, under exception items, towards expenses related to disputed matters settled with Aberdeen Global, Aberdeen Asset Management and its subsidiaries and reversal of provision for contingencies.
Net income from operations was Rs.1,782.44 crore, up by 11 percent from the Rs.1,605.48 crore, while it reported other income of Rs.107.53 crore, compared with Rs.145.89 crore in Q3FY12.
As on December 31, 2012, the consolidated headcount was 36,956, a net addition of 169 quarter-over-quarter, while the attrition level was stable at 13 percent in Q3FY13.
Mahindra Satyam Chairman Vineet Nayyar said, "With the settlement of the Aberdeen suit, the external litigation issues now stand concluded, freeing us to focus even more on the business-ready solutions for our customers. Revenue growth from different verticals reflects our proven capability to enable enterprises to be future ready."
CEO C.P. Gurnani said, "We continue to strengthen our industry and alliance partnerships and explore multiple avenues for growth, including M&As. The investments we have made to expand our capabilities, combining the strengths of Tech M and MSat, has helped us to build disruptive solutions for the Connected Enterprise of the future"
At the BSE, Satyam Computers shares are being traded at Rs.119.90, down Rs.2.85 or 2.32 percent on volume of 511,000 shares.
For comments and feedback: editorial@rttnews.com