Hyderabad: Mahindra Satyam Thursday posted over 56 percent jump in net profit to Rs 352 crore for the quarter ended June 30, largely on account of forex gains and interest income.
The company's net profit stood at Rs 225 crore in the April-June 2011 quarter.
The company had a foreign exchange gain of Rs 67 crore, and Rs 60 crore as interest from deposits, Mahindra Satyam Chief Financial Officer Vasant Krishnan told reporters here.
In April-June 2012, the company's other income rose to Rs 134 crore from Rs 98 crore in the year-ago period, which boosted the net profit.
The company's consolidated revenues for the reported quarter stood at Rs 1,880 crore, up 31.1 percent from Rs 1,434 crore in the April-June 2011 quarter.
Rupee depreciation contributed around 8 percent to the revenue growth.
"With this quarter, we have successfully ended our three-year transformational journey, recording progress on the back of strong fundamentals, focus and investments. Global business realities continue to be unpredictable. But for us, it is not unfamiliar. We know how to respond to that. And I do believe that we have responded in a fairly effective manner," Mahindra Satyam Chairman Vineet Nayyar said.
Despite a good show, the company remains cautious about the macro economic developments around the world, he added.
Tech Mahindra Group is keen on creating a consolidated IT services powerhouse by merging Satyam with itself. Tech Mahindra provides software services to clients mostly in the US, Europe and Australia.
Satyam Computer Services was at the centre of a massive accounting fraud perpetrated by its founder chairman B Ramalinga Raju. The firm, which was later taken over by Tech Mahindra, has been rebranded as Mahindra Satyam.
On the merger, Nayyar said the process is in the final stage of getting approvals from High Courts of Andhra Pradesh and Mumbai.
Mahindra Satyam CEO CP Gurnani said the company has become healthy and is ready face any kind of storm.
"We are very conscious that the world around us is almost ready for a perfect storm. The reality is that India and China's growth rates are going down and with some of the clouds of uncertainty of US, I would like to be very cautious," he said.
Indian IT players have been facing challenges in the US and European markets, which accounts for over 80 percent of their revenues, due to the uncertain economic and political climate.
While companies like TCS and HCL Technologies have done well in such an environment, peers like Infosys and Wipro have given lacklustre performance. Infosys, in fact, slashed its revenue forecast for FY'13 to five percent growth rate (from 8-10 percent earlier).
This is much lower than the sector's growth estimate of 11-14 percent given by industry body Nasscom.
"...The impact of the industrial economic directions will eventually be felt by us also. We have to be ready to face that storm," Gurnani said, adding the growth rate in European and APAC region is flattish in the quarter.
During the quarter, the company won a five-year multi-million dollar deal with a low-cost airline in the Asia-Pacific (APAC) region for infrastructure management support.
Gurnani added that going forward, the company will be focussing on Latin America and African regions, where Tech Mahindra has a strong presence.
As of June 30, Mahindra Satyam had 372 clients. Its attrition rate declined to 13.5 percent compared with 17.3 percent a year ago. The company added 2,643 people (net) in the quarter, taking its total headcount to 35,996 people.
The company's capital expenditure in the quarter stood at Rs 67 crore.
Meanwhile, the company, in a filing to the bourses, said the previous statutory auditors of the company have filed a suit in Ranga Reddy District court against the company, certain directors and certain former employees seeking Rs 1,000 crore plus interest as damages.
First Published: Thursday, August 02, 2012, 19:00