Mahindra Satyam to announce financials tomorrow

After a gap of about two years, Mahindra Satyam, earlier known as Satyam Computer, will announce the financial results for two financial years 2008-09 and 2009-10 tomorrow.

Satyam Computer had last announced its quarterly numbers for the period July-September 2008.

Following an admission of multi-crore accounting fraud by its founder and chairman B Ramlinga Raju in January 2009, the beleagured firm did not came up with audited results.

Tech Mahindra took over reins of the company in April 2009 and rebranded it as Mahindra Satyam.

The Company Law Board had given exemption to Mahindra Satyam from publishing results for two financial years.

The audited numbers which may not be very encouraging, is likely to give a clear picture about the financial health of the company.

"The new owners have nothing to do with FY09 figures. However even after taking over the over by Mahindra Group, the company had witnessed employees and client attrition in a large number in the first two quarters. The company also had to concentrate mainly on organizational restructuring rather than on revenues in first two quarters of FY10 which affected the top line," sources said.

The company will announce the financial details post March 2010 by November 15, the person added.

Besides, audited numbers, the company is expected to announce a roadmap for the merger and integration with Tech Mahindra.

Post the takeover by Tech Mahindra, the company observed cost-cutting measures like downsizing employees, relocation of office premises, the full benefit of these measures can only be reaped in 2012 only, sources said.

"Employee cost constitutes 60 per cent of revenues. Though there was heavy shortfall in member of employees, the benefit was nullified as the top line was hit by other factors in FY9."

Before the scam, Satyam claimed to have 53,000 employees. The company , currently, employs 30,000 people.

Though analyst feels the numbers will not be extra ordinary, the company employees are said to be in an elated mood.

"The company would have been ineligible for many contracts including government had it not decided to announce results before September 30. No company is allowed to withhold announcing results for two years. So all the employees are glad that the company does not lose the eligibility," a senior official said adding they hope for more projects and exposure.