Mahindra Satyam reports Rs.124 Crore loss in FY10
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Mahindra Satyam reports 124 Crore loss in FY10

By SiliconIndia   |   Wednesday, 29 September 2010, 13:05 Hrs   |    13 Comments
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Mahindra Satyam reports Rs.124 Crore loss in FY10
Hyderabad: After a long wait of two years, Mahindra Satyam has come out clean to declare its two year results. The company has witnessed a net loss of 124 crore, a 91.75 percent less compared to 8177 crore loss in FY09.

During this fiscal, the company has reported a net sales of 5481 crore. Mahindra Satyam's board met today to consider the results. Satyam Computer had earlier announced its numbers for the July-September 2008 quarter. The other income for the company remained at 106 crore and an EBITA margin of 8.3 percent.
During the declaration of the result, the entire fraud saga was revealed and the ordeals that the company has to go through. "There were two million emails, 200 bank accounts, 7000 contracts and 7,500 inflated invoices which needed to be reviewed," said Vineet Nayyar, Vice Chairman of Tech Mahindra. There was fictitious revenue of 4,807 crore, cash in bank was inflated by 327 crore and tax of 197 crore, which was unpaid, was shown as paid, Nayyar added.

Despite all, the company, which was on the verge of shutdown, could revive itself. Following Raju's revelation, the company's administration was taken over by a government-nominated board, which subsequently cleared sale of the company to Mahindra Group.

For the FY2010, the company's erosion in value of assets in subsidiaries is 77 crore. The total impact of the fraud on Satyam's profit and loss statement was 68 billion ($1.5 billion).

Tech Mahindra took over reins of the company in April 2009 and rebranded it as Mahindra Satyam. The Company Law Board had given exemption to Mahindra Satyam from publishing results for two financial years.

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Reader's comments(13)
1: great job by mahindra. i am sure satyam will grow in very high manner, and it will be a number one company but the management should be the same how now.
Posted by:Aruna - 30 Sep, 2010
2: i feel bad to say that the management was not taking care till they get in to the situation which they could not come over.if they come out earlier then they would have come over this kind of situation.I dont think that this will happen again for any of the company.This would be the unforgatable situation for all the business people and expect this will not happen again in any other company.
Posted by:sundeep - 30 Sep, 2010
3: AT THIS HOUR OF GAIN IN ETHICS, BUSINESS STANDARDS AND INTEGRITY, I FEEL THE FINANCIAL LOSS IS NO BIG DEAL. MAY THE DRIVING FORCE THAT IS EVIDENT FROM THE TOP TO THE BOTTOM OF THE MAHINDRA SATYAM CLAN OR FAMILY SHOULD BE CONGRATULATED. MY HEART-FELT PRAYERS AND GRATITUDE TO THOSE PEOPLE WHO MADE IT HAPPEN AND THUS SALVAGE SOME IMAGE OR THE LOST GLORY BACK TO THE SHOULDERS OF SATYAMITES. MAY GOD GIVE YOU THE COURAGE AND SPEARHEAD THE COMPANY TO THE NEW HEIGHTS.
Posted by:JAYAKUMAR NAIR - 30 Sep, 2010
4: 91% recovered from loss is fantastic performance and good road map framed by Mahindra to Satyam's employees and company's growth in future..



Posted by:Kumar Kancherla - 30 Sep, 2010
5: now it is in loss. but in future, it'll be a no.1 company in india
Posted by:arunkumar - 29 Sep, 2010
6: Dear Editor
I had watched Sri Anand Mahindra interview on TV,,I can say Mahindra Satyam is on a recovery path ,,I feel its clients list is healthy sign ,,yes it is a tiny loss and iam sure 2010 and 2011 will be profitable.Its core practice has now turned Niche ,,like FIFA WORLD CUP at South Africa 2010 is a good `reference in sports major events ,,and as i have followed news ,,they have been entrusted for FIFA world cup to be hosted by Brazil.
Apart from that they do have core team in place ,,with new recruits and a fresh platform,,it will be better times for them.But considering the past and how they bounced back ,,iam sure it will be a case study in business schools curriculum
Posted by:rama anne - 29 Sep, 2010
7: well this result is better than previous one. lets hope it improves.
Posted by:deep - 29 Sep, 2010
8:
WHETHER SHARE VALUE WILL BE UP OR DOWN TOMORROW
SUKANT Replied to: deep - 29 Sep, 2010
9:
it shud be up definitely..since it was holding gud today even when the sensex was sinking. Volumes are huge.
Nikunj Replied to: SUKANT - 29 Sep, 2010
10:
Tomorrow it should touch near upper circuit if any :) else 120 is near target. It can go till 150 in near term also. Enjoi
Ambrish Replied to: Nikunj - 29 Sep, 2010
11:
I think satyam share will open in down trends for 6 to 8% and closing at 94 to 96 levels

its fine to purchase at 90 to 92 for target 95
Gunjan Replied to: Ambrish - 29 Sep, 2010
12:
once mahindra satyam improves little more, i'm sure it will be merged with TechM and they will rule the market as the NO:1 IT services company. but a great recovery indeed!
akash Replied to: Gunjan - 30 Sep, 2010
13:
Being Part of Mahindra Satyam at Higher Level i assure you that we will be back with a bang in 1 year to come Phoenix Rising from the ashes
Kapil Sharma Replied to: akash - 30 Sep, 2010
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