Visit http://indiaer.blogspot.com/ for complete details �� ��
Tech Mahindra - Satyam discloses 1Q/2QFY11 financials; weak numbers.
Highlights of Satyam’s financials. Satyam’s 1QFY11 and
2QFY11 revenues stood at `12.5bn (~US$274m) and `12.4bn
(~US$267m) with EBITDA margin of 9.7% and 5.9%
respectively. PAT stood at `1,054m and `317m respectively
(other income includes forex gain of `336m & loss of 91m
respectively).
Operating metrics. Headcount was 27,722 & 28,068 in 1Q &
2Q respectively; attrition stood at ~25%. Utilisation was at ~71%
in 2Q. BPO headcount was 2,500. Europe contributes 26% to
Satyam’s revenue. The onsite:offshore revenue mix is ~58:42.
DSO stood at 100; client count (+US$250m) was at ~217.
Other details. Net cash at end-2Q stood stood at `24.9bn.
Satyam gave 15% and 3% salary hike to its offshore and onsite
employees respectively in 2Q. Mahindra Satyam saw healthy
traction in the manufacturing, telecom and media verticals, while
the healthcare division remained a laggard. Upaid litigation
continues over tax liability on US$70m, which was the settlement
amount. Satyam is contesting class-action lawsuits; the outcome is
not determinable at this stage.
Our view. Though there is clarity on Satyam’s margins, they
stand lower than anticipated. We await clarity on Upaid (tax
liability) and class-action lawsuits. We retain our target price of
`845 for TechM (including `245 from Satyam, based on 25%
holding company discount) till we formalise estimates for Satyam.
No comments:
Post a Comment