Mahindra Satyam has cut its losses as ship steadies

Indian IT supplier Mahindra Satyam seems to be steadying its ship. In 2009 it made massive losses of £1.241bn following the billion dollar fraud, known as India’s Enron, committed by its chairman B Ramalinga Raju.

Its books have now been audited and it has cut its losses to £17m for 2010. So you could even say it almost broke even.

I have written virtually hundreds of articles about the fraud and then Satyam’s eventual take over by Tech Mahindra and rebirth as Mahindra Satyam.

It is good news for the company and its loyal staff if it gets back on its feet. One of the things that stood out to me about Satyam was that the fraud was an isolated case and its customers and industry analysts had a lot of good things to say about it.

At the time of the fraud Satyam had more than 600 customers in 66 countries receiving services such as software development, business process outsourcing, as well as support for suppliers such as Oracle and SAP. Customers included Unilever, Sony, Tesco, Boots, Nestle and Fifa.

I was also impressed about how open the company was with the press following the fraud.

I am interviewing the head of Europe at Mahindra Satyam tomorrow. I will ask Vikram Nair about the year ahead and blog about it tomorrow.