The ghost of Satyam is laid to rest

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Following the announcement of Mahindra Satyam's latest annual results its European head told me the company "has put the past to rest."

Vikram Nair also told me some of the IT service provider's plans going forward.

In its last full year the company reported a loss of £17m. This is actually quite good compared to £1.241bn losses the year before. This was after its former chairman admitted that he had been cooking the books for years.

And the business was actually profitable although there were many exceptional items as a result of the fraud and following restructure. Profits from the business operations were 3.5% in 2008/09 and 8.5% in 2009/10.

The company is hiring as well. When news of the fraud broke in January 2009 Satyam had 44,000 staff. It now has 27,000 but will add 3,000 over the next 12 months.

Nair said the results announcement has put to rest the whole Satyam scandal and in mid November when the company announces its half year results its condition will be clearer.

He said all the lawsuits are done and dusted, although some class action suits from shareholders remain.

The company has paid back all the money it borrowed to keep afloat during the fraud. It had to borrow money to pat staff and suppliers for example. It now has £450m in cash.

On its strategy going forward Nair said the strengths of software company Satyam and telecoms specialist Tech Mahindra will be combined to offer customers technology and communications.

"This was a game changer for the Mahindra Tech group because before this we only did communications. We now want to be a globally recognised ICT supplier.

He said the combination of communications and software will give Mahindra Satyam a strong position as a cloud supplier. He said the company has already had a major trial of a cloud service because its event management software used by Fifa at the World Cup in South Africa was cloud based.

 

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This page contains a single entry by Karl Flinders published on September 30, 2010 11:55 AM.

Lehman Brothers in London opens to tie up loose ends was the previous entry in this blog.

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