Mahindra Satyam''s Q3 results likely in February second week

Posted By: Pti
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Hyderabad, Jan 27 (PTI) Mahindra Satyam is likely toannounce its Q3 FY 11 results in the second week of February,according to sources in the IT major.

"The results may be announced either on February 11 or14. The date is yet to be fixed for the Board meeting. Howeverit will be in one of these two dates," they told PTI today.

The numbers will be better than those of Q1 and Q2,sources added.

The company (formerly Satyam Computer) had reported anet profit of Rs 23.3 crore and Rs 97.5 crore in Q2 and Q1 onrevenues of Rs 1242 crore and Rs 1248 crore, respectively.

The EBITDA margins fell from 9.1 per cent in Q1 to 5.2per cent in Q2 on account of high employee cost, VineetNayyer, Chairman of Mahindra Satyam, had said during theannouncement of first two quarter results in November last.

The IT firm is also in the process of getting oldcustomers back into its fold. Big clients like State FarmInsurance have indicated the company to send fresh quotations,a senior Mahindra Satyam official said requesting anonymity.

"State Form Insurance is one of our marquee customers.

They recently asked us to send fresh quotations. We are on thejob. The contract is likely to be finalised towards thisquarter-end."

The Hyderabad-based firm is also in touch with anotherbig client Coke, which deserted Satyam after B Ramalinga Raju,its former Chairman, confessed to having fudged accounts tothe tune of Rs 7,500 crore two years ago, the official said.


However, analysts feel there will not be much expectation from the results even with old clients coming into the company''s fold again.

According to SMC Global Securities, numbers will be inline with the previous quarters.

"Investors were disappointed with Q1 and Q2 results.

Everyone though the company would become profitable in sixmonths or one year. But management said it would take two moreyears. There is not much expectation on Q3 results," saidJagannadham Thunuguntla, Research Head, SMC Global Securities.

"Results may not be blockbuster or sensationallypositive. The numbers may not be different from the last twoquarters. Share prices also may not be affected. Whoeverwanted to exit, has already exited from the stock market."

Thunuguntla said the EBIDTA margins will also bearound 5 per cent, considering the company�s statement inNovember that they are going to recruit 3,000-odd employees.

"They also said they are going to add new customers.

But the company may not generate revenues in this fiscal fromnew customers. Billing is likely to start for the secondquarter of the next fiscal," he said.

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