After unleashing India's biggest corporate scandal, Satyam Computer Services, once India’s fourth-largest information technology firm after TCS, Infosys and Wipro, announced its quarterly result.
The reason responsible for making the company do so is the open offer that Tech Mahindra, which bought Satyam, is unveiling this Friday.
Surprising as it may sound, Satyam revealed that it has posted a consolidated net profit of Rs 160.05 crore, while the standalone amount is Rs 181 crore for the quarter (October-December). The reason why the consolidated profit is less is because almost all the other subsidiaries dragged down the figures as they are running in loss.
But don’t put too much faith in it as the company has admitted up front that the financial information was prepared using internal management information systems. It also said that it has not been examined by an independent auditor. The company statement said, “The actual results may be materially higher or lower than projected.”
For the month ended February, 2009, the company’s standalone net profit was Rs 52 crore.
However the total income, the filing showed, registered a low in February from a month earlier. While the total income stood at Rs 637 crore in February, it was Rs 647 crore in January.
Satyam, had not reported results ever since the scandal rocked the country. It may be recalled that Satyam plunged into crisis after its founder B Ramalinga Raju confessed in early January to perpetrating a Rs 7,000 crore financial fraud.
Tech Mahindra had recently won an auction that gave it controlling stake in Satyam after the crisis hit the firm. It has acquired a 31% stake through a preferential offer and will make an open offer to acquire an additional 20% stake.
Shares in Satyam rose nearly 10% to Rs 66.85 while Tech Mahindra jumped as much as 25.46% to Rs 744.20, after the announcement.