Mahindra Satyam - Consolidated Q4 FY2013 Result First Cut - Microsec

Mahindra Satyam announced its consolidated Q4 FY2013 and FY2013 results on 16 May 2013. While the company's top line came below Bloomberg consensus estimate, its bottom line beat street expectations. A glimpse of the company's results is as follows:

While Satyam's top line dipped 0.2% sequentially to Rs. 1,935.7 Crores, its bottom line expanded 467.8% q-o-q to Rs. 454.1 Crores in Q4 FY2013. Although in USD terms, the company reported incremental revenues during the quarter, appreciation of home currency against the greenback turned the performance into red. Furthermore, higher personnel expenditure led to a 146 basis points q-o-q decline in Satyam's EBIDTA Margins to 20.1% in Q4 FY2013. However, lower tax outgo and an exceptional gain of Rs. 133.96 Crores aided the company to report such jump in net profits. The gain pertains to reversal of impairment losses in subsidiaries. In addition, during Q3 FY2013, Satyam had a onetime outgo of Rs. 369.04 Crores for settling of claims. Baring these impacts, the company would have reported a sequential decline in bottom line.

Satyam's growth remained in line with Infosys and Wipro whereas the company underperformed TCS and HCL in quarterly numbers. Although the company reinitiated the process to reward shareholders by proposing dividend of Rs. 0.60 per share, its operational performance suggests to remain cautious on the stock in near term.

Source : Equity Bulls

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