Mahindra Satyam?s net profit for the second quarter grew 10-fold to R238.24 crore on a year-on-year basis ? beating market estimates by a mile ? riding on great demand for its outsourcing services and rupee depreciation. The company, according to analysts, has recovered fully from the aftermath of the accounting fraud of 2009, which ended in its founder Ramalinga Raju being sent to jail.
Operational income from the quarter was up 27% from a year ago period to R1,577.7 crore. Sequentially, net profit was up 6%, while revenue rose 10%, compared to the first quarter.
?Our growth momentum continues for the fifth consecutive quarter. As we come towards the end of our three-year transformation journey, it is indeed satisfying to see that all our key business performance indicators such as growth, profitability and talent retention are on course. We have shown significant improvement quarter-on-quarter, in spite of an uncertain macro-economic environment,? chairman Vineet Nayyar said.
Mahindra Satyam added 36 new customers in the second quarter, including three Fortune 500 companies, the company officials revealed while declaring the earnings on Thursday. It had 32,092 employees as of September 30, having net added 654 employees in July-September. Attrition was down to 15.6% during the quarter.
?Our emphasis on differentiation and scaling up our market share through verticalised solutions is bearing fruit. Investments into emerging areas such as enterprise mobility and smart grid are gaining momentum,? chief executive officer CP Gurnani said.
The company, however, warned that euro zone debt crisis could dent demand for outsourcing. ?We are living in uncertain times. The current euro zone crisis has the potential to significantly impact the market conditions,? Nayyar said. But spending on tech services in the long term was expected to remain strong as global corporations look to cut costs, he added.
The company has said its american depository shares (ADS) programme is expected to be wound down by March 2012. Satyam?s ADS were delisted from the New York Stock Exchange following the accounting scandal, but continued to be traded on the over-the-counter market in the US.