Indian IT services provider Mahindra Satyam has returned to profit as it enters the next phase of its recovery following the near terminal decline that occurred following a $1bn internal fraud in 2009.
In its latest three-month period the company reported sales of $320m, which represented a 5.2% increase on the previous quarter and 19.3% more than the same period a year ago. It made $50.2m profit, compared with a $30m loss in the previous quarter when it paid a $70m fine related to the fraud.
Mahindra Satyam is the former Satyam business which was rescued by fellow Indian company Tech Mahindra in 2009 after an internal fraud threatened to put Satyam out of business. In January 2009, the company was thrown into turmoil when its former chairman, B Ramalinga Raju, admitted to misreporting the company's financial figures to the tune of $1bn.
The company, which has 220 customers, said it has stabilised and will now focus on growth. It currently employs 31,438 workers, which is 2,172 more than at the end of the previous three-month period.