'We're back on track', says Satyam; declares 30% dividend
17 May 2013
Four years after Tech Mahindra, a part of the Mahindra Group, took over the scam-shattered Satyam Computer Services in a government-run auction, the management of Mahindra Satyam, as it is now called, feels it has reached its turnaround goals.
Despite a 15 per cent fall in net profit during the fourth quarter of financial 2012-13, the company has declared a dividend of 30 per cent on each share with a face value of Rs2.
"We can say now that the turnaround is complete. So we also want to reward our shareholders who have been patiently waiting for things to improve," Vineet Nayyar, Satyam's chairman, said at a briefing in Hyderabad.
Net profit fell in the fourth quarter because of a higher tax burden, the company said on Thursday.
Net profit fell to Rs454 crore in the three months ended 31 March from Rs534.21 crore a year ago. Profit was down Rs75 crore due to taxes, which the company had deferred paying in the 2011-12 fiscal.
Revenue rose 16.2 per cent to Rs1,936 crore from Rs1,665.84 crore.
Tech Mahindra bought Satyam Computer Services Ltd in an April 2009 auction overseen by government-appointed directors after the company had fallen into a crisis following founder-chairman B Ramalinga Raju's admission that he had misstated accounts to the tune of Rs7,136 crore over several years.
''Looking at where we are now, there is an element of satisfaction,'' Nayyar said.
''To symbolise the completion of our journey, we are announcing a dividend this quarter for the previous year. This is symbolic. Now we are fully fit,'' he said.