Mahindra & Mahindra Limited : Mahindra Satyam Q3 PAT up 424% YoY; Revenue up 34% YoY;

Q3 PAT up 29% QoQ at Rs 308 crores; Revenue up 9% QoQ at Rs 1718 crores;

Hyderabad, India, February 01, 2012: Mahindra Satyam, a leading global Consulting, IT and Business services provider today announced its unaudited financial results under Indian GAAP for the Third quarter ended December 31, 2011, reflecting a healthy progress in its continuing focus on operational efficiencies. 

Financial Highlights for the Quarter ended December 31, 2011:

• Consolidated Revenue was INR 1718 crores, up 9% QoQ, up 34% YoY
• EBITDA was INR 278 crores up 15 % QoQ. EBIDTA Margins expand by 87 bps QoQ to 16.2%
• Profit After Tax was at INR 308 crores versus Rs 238 Crores in Q2, up 29% QoQ, 424% YoY
• EPS was at Rs. 2.62 in Q3 FY12 versus Rs. 2.02 in Q2FY12

Financial Highlights in USD (per Convenience Translation):

• Q3 consolidated Revenue was at USD 325 million
• EBITDA was at USD 53 million
• Profit After Tax was at USD 58 million

Other Highlights

• Total headcount stood at 32,280  as of December 31, 2011, a net addition of 188 QoQ
• Attrition was stable at 16% in Q3FY12 as compared to 25% same time, last year

Vineet Nayyar, Chairman, Mahindra Satyam, said, "We continue on our path of building the organization and improving our operating metrics, in the face of some headwinds on the economic front."

Speaking at the occasion, CP Gurnani, CEO, Mahindra Satyam, said, "Our 3-pronged approach to the market through vertical, regional and service-line penetration coupled with effective portfolio management focus is showing consistent results in this changing environment. Investments into emerging areas such as Mobility, Cloud and Security Solutions should help us accelerate, as we complete the initial3 year transformation journey"

Key wins

In addition to new partnerships, Mahindra Satyam also announced the following key wins during the quarter gone by,

• Won an Oracle Payroll Implementation and support order from a leading North American Transportation company
• Engaged by a leading Regional development bank in Asia for implementation of its Enterprise financial solution
• Chosen by a Top speciality retail major in North America for implementation of Oracle retail
  • Won a multi-year / multi-million dollar project with a key client in Transportation Engineering. This new win not only includes retaining current scope of work but also has led to additional business in new areas

Partnerships

• Mahindra Satyam Signed a MOU with Kaspersky Lab. Under the MOU Kaspersky Lab, along with Tech Mahindra and Mahindra Satyam will leverage their strengths in security products and services to develop joint security solutions in the areas of Mobility and Endpoint Security and Cloud Security Services

• Saab India Technology Centre inaugurated in Hyderabad. The Saab Technology Centre (SITC) will form a bridge between India and Sweden. The aim of the Centre is to support the internal operational excellence and optimization initiatives within Saab, while also supporting Saab to expand in the Indian market

• Launched Workspace-as-a-Service (WaaS) solution which leverages technology from Citrix Systems, Microsoft and Liquidware Labs.  WaaS provides innovative user profiling and assessment methodology in the workspace virtualization area

Recognition

• The company was named as 'Systems Integrator of the Year' at CNME ICT Achievement Awards 2011 which was held in Dubai. The award was given in recognition of the company's excellence in delivering projects on time and on budget and also ensuring that the end-user organization gets the technology it needs not just for the present but also for the long term
• Mahindra Satyam won the EMC 2012 Partner Innovation Award for its outstanding Industry Solution for Financial Services - ProFinA, at the EMC Partner Conference at Momentum Berlin on October 31, 2011. This award recognizes excellence and innovation in a select group of partners who develop solutions based on EMC offerings for the Financial Services industry (Banking, Insurance, Investment Banking & Capital Markets) that help customers drive business and operational efficiencies, manage compliance issues, and enhance customer centricity. 
• Becomes SAP® Business ByDesign™ Solution Reseller

Mahindra Satyam is now authorized to market, sell and deploy SAP Business ByDesign as well as offer additional services. These additional services may include back office services, consulting, change management, or data migration. SAP® Business ByDesign™ is a fully integrated business management solution dedicated to companies in the small and midsize enterprise (SME) market.

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About Mahindra Satyam

Mahindra Satyam is a leading global business and information technology services company that leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company's professionals excel in enterprise solutions, supply chain management, client relationship management, business intelligence, business process quality, engineering and product lifecycle management, and infrastructure services, among other key capabilities.

Mahindra Satyam is part of the $14.4 billion Mahindra Group, a global federation of companies and one of the top 10 business houses based in India. The group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, vacation ownership, rural and semi-urban financial services, etc. Mahindra has a significant and growing presence amongst others, in the automotive industry, agribusiness, aerospace, automotive components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel and two wheelers.

Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations.

For clarifications, write to us at: [e-mail]

Safe Harbor

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Mahindra Satyam undertakes no duty to update any forward-looking statements.

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Financial Summaryin Rs mn