It’s official, Mahindra Satyam FY10 loss at Rs 125 cr

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It’s official, Mahindra Satyam FY10 loss at Rs 125 cr

This article was posted on Sep 29, 2010 and is filed under Press Releases

Mahindra Satyam (formerly Satyam Computer) today reported a consolidated loss of Rs 124.60 crore for year ended March 2010, a far better show from the previous fiscal when it had plunged into a deep crisis after founder B Ramalinga Raju admitted to multi-crore rupee scam.

Helped by a sharp reduction in employee cost at Rs 3,981.10 crore in 2009-10 from Rs 6,073.7 crore in the previous year, the company reduced the net consolidated loss from Rs 8,176.8 crore in 2008-09.In FY09, the company had to incur exceptional expenses related to the scam.

Cash and bank balances were to the tune of Rs 2,176.8 crore as on March 31, 2010. The loan balance as of March 31, 2010 was Rs 422 crore.

The results of Mahindra Satyam were keenly awaited across industry and markets as the real financials were shrouded in mystery after the scam –said to be India’s biggest corporate fraud– came to the light in 2009.

The audited numbers would now give a clear picture about the financial health of the company. The scam had thrown up many questions on corporate governance and accounting practices.

Mahindra Satayam audited financial results are coming after a gap of nearly two years. The company had obtained exemption from the Company Law Board from publishing audited results for the past two fiscals after its takeover by Tech Mahindra in April 2009.

Following the shocking revelation of an accounting fraud in Satyam Computer, a government-appointed board headed by Deepak Parekh, had taken over the administration of the company. Tech Mahindra later took the reins of the company after a transparent bidding.

“With this announcement today, we have fulfilled an important commitment and kept to our promise of transparency and agility. It also marks the beginning of a more significant journey of growth and the future,” Mahindra Satyam Chairman Vineet Nayyar said.

Mahindra Satyam CEO C P Gurnani said the company will take two years to turn around.

The total income of the company stood at Rs 5,481 crore for the last financial year. In 2008-09, total income was Rs 8,812.6 crore.

Exceptional items stood at Rs 7,992 crore and Rs 416.9 crore for the fiscals 2008-09 and 2009-10, respectively.

“We will inculcate the highest values of Corporate Governance, for which the Mahindra group is renowned for, in shaping the future of this organisation,” Nayyar said.

Tech Mahindra took over reins of the company in April 2009 and rebranded it as Mahindra Satyam.

Post the takeover by Tech Mahindra, the company had taken many cost-cutting measures like downsizing, relocation of office premises. The fruits of these measures can be reaped in 2012 only.

The company employs over 27,000 people.

source: Business-Standard

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