Mahindra Satyam has cautioned about an uncertain business environment globally, while showing a growth of 21 per cent in revenues and sharp increase in margins in the fourth quarter.
The company posted net profit of Rs 534 crore in the fourth quarter of 2011-12 against a profit of Rs 308 crore in the previous quarter and a loss of Rs 327 crore in the comparable quarter last year. Its revenues went up 21 per cent to Rs 1,666 crore.
Mr Vineet Nayyar, Chairman of Mahindra Satyam, said the US has begun to show signs of strains and nationalism overtaking prudent economic norms in parts of Europe. “These will have serious impact not just in their countries but globally,” he said.
The company posted a loss of Rs 59 crore on account of forex fluctuations during the quarter.
In the fourth quarter, the US continued of 51 per cent of Mahindra Satyam's revenues, followed by 25 per cent in Europe. The remaining from the rest of the world.
Announcing results here, he said that there was an opportunity for companies in the downturn. Countries would look at the IT firms to increase efficiencies.
For the full year, it posted revenues of Rs 6,396 crore (Rs 5,145 crore), showing a growth of 24 per cent and a net profit of Rs 1,306 crore as against a loss of Rs 147 crore in the previous year.
As a result of good numbers, EPS (earnings per share) value soar to Rs 4.54 from a negative Rs 2.78 in the same quarter last year. Employee costs in the quarter went up to Rs 1,020 crore (Rs 898 crore). For the full year, this figure was put at Rs 3,943 crore (Rs 3,576 crore).
Human resources
While stating that the organisation is ‘nimble', Mr C.P. Gurnani, Chief Executive Officer, refused to give hiring plans for 2012-13. “We are reviewing it on a weekly basis, taking people only need based,” he said.
The company employs 33,353 people as on March 1, 2012 with a net addition of 1,110 over the previous quarter. Attrition rate has improved to 15 per cent in the quarter from 22 per cent in the comparable quarter last year, he said.
The Satyam scrip slid by 4 per cent to Rs 66.80 on the BSE on Thursday.