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The secret behind Mahindra Satyam’s surging performance

Zafar Anjum | May 27, 2013
Rohit Gandhi, senior vice president, Asia-Pac, India & MEA, Mahindra Satyam, describes the company’s spectacular results and what part Asia Pacific played.

Rohit Gandhi

Rohit Gandhi, senior vice president, Asia-Pac, India & MEA, Mahindra Satyam

Indian IT services company Mahindra Satyam recently announced its fourth quarter results. The company has made significant progress in China in terms of increasing headcount and adding engineering clients and has also acquired a large SAP consulting provider in Brazil called Complex IT and inked a partnership deal with TechMatrix for ASEAN region.

"The turnaround of Mahindra Satyam is symbolically and practically complete. The merger which is at its penultimate phase will embark a new chapter for Mahindra Satyam. We sincerely thank all stake holders for supporting us during this crucial phase," said Vineet Nayyar, chairman, Mahindra Satyam when the results were announced.

What is making Mahindra Satyam so buoyant? We asked Rohit Gandhi, senior vice president, Asia-Pac, India & MEA, Mahindra Satyam, what's the secret behind the surge and here are his answers.

The recently announced results (quarterly and annual) for Mahindra Satyam have been spectacular. Did you expect this? What accounts for this kind of growth?

Our fourth quarter profit grew 468 percent sequentially from the third quarter and the company has declared a dividend of 30 percent. Despite the challenging environment the integration efforts between Mahindra Satyam and Tech Mahindra have clearly worked. I would say that clients are increasingly confident about offering us bigger-ticket deals. This is evidenced in a large and significant contract for end-to-end ownership and business transformation for IT Applications and Infrastructure for an Asian Paper & Packaging giant. It is substantial and value-added as it covers both Engineering and Sourcing support.

We are also gaining traction in the Middle East, where we were awarded a CRM billing and implementation and support by a leading utilities company and a number of Infrastructure Managed Services contracts, and there were sizeable wins in Singapore with a government agency.

Despite slower economic growth in many regions, more companies are seeing the need to transform their organisations through IT.

How much did Asia Pacific contribute to the results? Has RoW overtaken Europe in terms of global revenue contribution?

RoW region recorded 24.5 percent of global revenue. In Singapore, we have won a large multi-year deal from a leading government agency. We have also forayed into the corporate sector particularly in the Banking and Financial Services (BFSI) and Logistics services in the region.

RoW has always been important to us as a market given that these are growth economies. However, US & Europe continue to be big markets.

How did the company perform in China? Are you going to increase headcount in China? By what percentage?

 

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