Mahindra Satyam

Mahindra Satyam

Type	Public BSE: 500376 OTC Markets Group: SAYCY
Industry	IT services, IT consulting
Founded	1987 (1987)
Headquarters	Hyderabad, India
Key people	Vineet Nayyar (Chairman) C.P. Gurnani (CEO)
Services	IT, business consulting and outsourcing services
Revenue	1,578.00 crore (US$320.02 million) (Q2 2011)[1]
Profit	238.00 crore (US$48.27 million) (Q2 2011)
Owner(s)	Mahindra Group
Employees	32,092 (2011)[2]
Website	Mahindrasatyam.com

Mahindra Satyam (BSE: 500376, OTC Markets Group: SAYCY) is a Brand identity of Satyam Computer Services Limited. Satyam Computer Services Limited was founded in 1987 by B Ramalinga Raju. Mahindra Satyam is a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The company offers consulting and information technology (IT) services spanning various sectors, and is listed on the New York Stock Exchange, the National Stock Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand identity “Mahindra Satyam” subsequent to its takeover by the Mahindra Group’s IT arm, Tech Mahindra on April 13,2009. Mahindra Satyam has offices in 32 countries.Mahindra Satyam is ranked 17 in the list of IT services providers in India according to a study by CyberMedia's Dataquest Research in 2011.^[3]

Industry Presence

Mahindra Satyam provides services in the following areas:

• Aerospace and Defence
• Banking, Financial Services & Insurance
• Energy and Utilities
• Life Sciences & Healthcare
• Manufacturing, Chemicals & Automotive
• Public Services & Education
• Retail
• Consumer Packaged Goods
• Travel, Transport, Logistics
• Telecom, Infrastructure, Media and Entertainment & Semiconductors

Offices of Mahindra Satyam Across The Globe

Mahindra Satyam headquartered in Hyderabad, India has development centres and/or regional offices in the following located Americas, APAC, Europe, Middle East and Africa.

Mahindra Satyam Campuses

Mahindra Satyam IT Campus, HITEC City

Mahindra Satyam is the largest IT employer of Hyderabad with its 3 campuses:

• Gachibowli Campus [In DLF SEZ]
• Mahindra Satyam InfoCity [Behind Satyam Cyber Space]
• Mahindra Satyam GateWay [Bldg 1 & 2 in My Home Hub]

Global units

Asia Pacific: India-Bangalore, Bhubaneshwar, Chennai, Hyderabad (Headquarter), Pune, Vishakapatnam, Delhi,^[4] Gurgaon,^[5] Mumbai^[6].

Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Korea

Europe: Belgium, Czech Republic, Denmark, France, Finland, Germany, Hungary, Ireland, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom.

Middle East and Africa: Bahrain, Egypt, Jordan, Kenya, Kuwait, Qatar, Saudi Arabia, South Africa, United Arab Emirates.

Americas: USA, Canada, Brazil.

Satyam Technology Center at Bahadurpally, Hyderabad

Satyam Development Center

Satyam campus, Hyderabad

Satyam Chennai employees at Satyamotsav, an annual cultural show

Mahindra Group V-C Anand Mahindra

Competencies

Mahindra Satyam offers the following ‘horizontal’ services.

• Extended Enterprise Solutions
• Web Commerce Solutions
• Business Intelligence Services
• Quality Consulting
• Strategic Outsourcing Services
• Industry Native Solutions
• Business Services Group - BSG (BPO)
• Engineering Services
• Product management

Partnerships

Feb 11, 2010, Mahindra Satyam, announced that it has entered into a partnership with the Integr8 Group, Africa’s largest privately owned ICT service and solutions provider.^[7]

Merger

Mahindra Satyam's proposed merger with Tech Mahindra may be delayed all because of legal issues, and ambiguity over jurisdiction between investigating agencies and the government.^[8] The merger has been delayed due to two tax cases pending with the Income Tax claiming over Rs 2700 crore for both.^[9]

Turnaround

The company had reported a consolidated net loss of Rs 233.3 crore for the July–September quarter of 2010. Speaking at a press conference, Vineet Nayyar, chairman of the company said the consolidate cash and cash equivalents at Rs 30 crore compared to Rs 26 crore. “We will take three [years] for a turnaround,” he informed.^[10] Even though the company got 245 crores profit in Q4 for 2010–2011, but due to outside payments nearly 570 crores for SEK,UNIPAID and Class Action Suit in Q4 (Total 641 crores for the year 2010-2011 ),the company had reported a consolidated net loss of Rs 327 crore for the Jan-Mar quarter of 2010-2011.IT firm Mahindra Satyam posted a consolidated net profit of Rs 225.2 crore for the quarter ended June 30, 2011. During the quarter, the company added 2,172 people (net), taking total headcount to 31,438 as of June 30, 2011.^[11] The company added 36 new customers during the quarter. The total headcount of the company stood at 32,092 as of the quarter ended September 30,2011 during which net addition of 654 personnel took place.^[12]

Controversies

Maytas acquisition

In 2008, Satyam attempted to acquire Maytas Infrastructure and Maytas Properties, founded by family relations of company founder Ramalinga Raju (Maytas is "Satyam" reversed) for $1.6 billion, despite concerns raised by independent board directors.^[13] Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government,^[14] a veiled criticism by the vice president of India^[15] and Satyam's clients re-evaluating their relationship with the company.^[16] Satyam's investors lost about INR 3,400 crore in the related panic selling. The USD $1.6 billion (INR 8,000 crore) acquisition was met with skepticism as Satyam's shares fell 55% on the New York Stock Exchange.^[17] Three members of the board of directors resigned on 29 December 2008.^[18]

Accounting scandal of 2009

Main article: Satyam accounting scandal

In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in a massive accounting fraud. Ramalinga Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former C.F.O Vadlamani Srinivas.

See also

Companies portal

• Creative accounting
• Tech Mahindra

References

• The Official Corporate Website for Satyam Computer Services
• Mahindra Satyam repositioned as an ICT firm
• Are there more Satyam's in making?
• BusinessWeek profile
• The rise and fall of Satyam
• Raju's Statement - Scanned Copy - "Satyam CEO's Letter to its board of directors" - Hyderabad, India, January 7, 2009
• Merger of MSAT and TechM (2011). Merger of IT Companies (Documentary). India: Moneycontrol.com. http://www.moneycontrol.com/video/business/mahsatyam-techmahtoappointbankerstofastenmerger_581330.html?utm_source=Article_Vid&q=. 

External links

1. ^ http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/mahindra-satyam-posts-10-fold-growth-in-q2-pat-to-rs-238-crore/articleshow/10676808.cms
2. ^ http://profit.ndtv.com/news/show/mahindra-satyam-posts-5-8-q2-profit-growth-revenue-jumps-10-187250
3. ^ http://www.rediff.com/business/slide-show/slide-show-1-top-20-it-companies-in-india/20110803.htm
4. ^ moneycontrol.com
5. ^ gurgaononcall.com
6. ^ http://www.moneycontrol.com/company-facts/satyamcomputerservices/locations/SCS
7. ^ "Mahindra Satyam partners with Integr8 for expansion in South Africa". http://www.prlog.org/10529107-mahindra-satyam-partners-with-integr8-for-expansion-in-south-africa.html. Retrieved 18 February 2010. 
8. ^ moneycontrol.com
9. ^ http://www.moneycontrol.com/news/business/mah-satyam-tech-mah-to-appoint-bankers-to-fasten-merger_581330.html
10. ^ indiaearnings.moneycontrol.com
11. ^ http://profit.ndtv.com/news/show/mahindra-satyam-reports-rs-225-cr-profit-in-q1-168250
12. ^ http://www.moneycontrol.com/news/business/mahindra-satyam-q2-net-soars-europe-crisisworry_614931.html
13. ^ The Hindu Business Line - ‘Satyam’s independent directors had raised concerns over the deal’ Friday, December 19, 2008
14. ^ "Centre refers Satyam deal to ROC". timesofindia.indiatimes.com. 20 December 2008. http://timesofindia.indiatimes.com/Hyderabad/Centre_refers_Satyam_deal_to_ROC/articleshow/3864623.cms. 
15. ^ The Hindu : Business : Plain-speak by Hamid Ansari on governance - (Sunday, December 21, 2008)
16. ^ Bibhu Ranjan Mishra (December 18, 2008). "Satyam clients likely to re-evaluate contracts". Bangalore: Business Standard. http://www.business-standard.com/india/news/satyam-clients-likely-to-re-evaluate-contracts/00/12/343589/. 
17. ^ [1]^{[dead link]}
18. ^ "Fourth independent director M. Rao resigns from Satyam". economictimes.indiatims.com. December 29, 2008. http://economictimes.indiatimes.com/Features/Satyam_Maytas_deal_called_off/Fourth_independent_director_resigns_from_Satyam/articleshow/3909517.cms. 

External links

• Official website