Mahindra Satyam net down by 71 percent due to claim settlement

Last Updated: Thu, Jan 31, 2013 13:50 hrs

Hyderabad, Jan 31 (IANS) Leading global consulting and IT services provider Mahindra Satyam Thursday reported a 71 percent fall in net profit for the third quarter ended December 2012 due to exceptional loss of Rs.294 crore due to claims settlements.

The net profit during the quarter was Rs.80 crore as against Rs.278 crore during the previous quarter. The net profit fell 74 percent year-on-year. Before including exceptional items, the net profit stood at Rs.374 crore, up 34.53 percent compared to the previous quarter.

Vineet Nayyar, chairman, Mahindra Satyam, told reporters that the exceptional loss was on account of claim settlement reached with Aberdeen of Britain.

"With the settlement of the Aberdeen suit, the external litigation issues now stand concluded, freeing us to focus even more on the business-ready solutions for customers," he said.

Last month, Mahindra Satyam had paid the money to Aberdeen Global to settle claims for alleged fraudulent misrepresentations made by the former management of Satyam in London.

Tech Mahindra took over the scam-hit Satyam Computer Services in April 2009, and re-branded it as Mahindra Satyam.

Under the Indian GAAP, the consolidated revenues of Mahindra Satyam during the third quarter stood at Rs.1940 crore, a growth of 0.1 percent QoQ and 13 percent YoY.

EBITDA during the quarter was Rs.418 crore, up by 0.3 percent QoQ and 50 percent YoY.

The company added 169 employees during the quarter. Its headcount stood at Rs.36,956 as of Dec 31, 2012. Its attrition rate was stable at 13 percent.

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