M Satyam Q2 net jumps 10-fold; cautious over eurozone crisis

The company (formerly Satyam Computer) had reported a PAT of Rs 23.31 crore for the same quarter of the last fiscal. On a quarter-on-quarter basis, the PAT was up 5.8 per cent from Rs 225 crore in Q1, FY'12.

"I had said that our convalescence period will be three years. By the results I give in today I think it would be safe to say that the period of convalescence is almost over we are back to health.

"All I would like to assure you is that we are ready and we will be running and we will get our competition run for the money," company Chairman Vineet Nayyar told reporters here.

The company, once the country's fourth largest software services provider, lost ground after revelation of a multi-crore rupees accounting fraud by its the then chairman B Ramalinga Raju in 2009. Tech Mahindra, later, bought the company and renamed it Mahindra Satyam.

The company's consolidated revenues surged by 27 per cent during the quarter under review to Rs 1,578 crore. The banking, finance services and insurance segment contributed 20 per cent to the overall revenues and grown at more than 16 per cent in the second quarter.

Replying to query on the economic slowdown in some parts of the globe, Satyam CEO C P Gurnani said if the there is a problem in Greece and Italy, it could impact at least 20 banks worldwide with adverse affects.

"If Greece and Italy were to be impacted (financially) it will impact at least 20 banks in a very significant way. Now those banks could be any part of the world. But predominantly they can impact the rest of the economy and will have cascading affects. So that is why I said we are very very cautious," Gurnani said. Last year the company garnered more than 25 per cent of its revenues from Europe.

On Salary hikes, Gurnani said 12 per cent salary hike was given offshore employees and 2.5 per cent for onsite. Replying to question on the proposed merger with Tech Mahindra, Nayyar said he was hoping the integration or amalgamation should take place sometime in the latter half of next year.

The company has added 36 new customers in the quarter, across various sectors, predominantly in enterprise mobility and smart grid. The total headcount of the company stood at 32,092 as of the quarter ended September 30, during which net addition of 654 personnel took place.

Attrition stood at 15.6 per cent during the quarter.