Your Ad Here

Tuesday, July 28, 2009

Is The Worst Over For Satyam?

CP Gurnani, the CEO of Mahindra Satyam, said.

"I have hard work to do. I know I will make it happen,"

Work hard, he surely will. But will Gurnani deliver and turnaround Mahindra Satyam.
He is confident and wants the investor community to give him just six months.

“We will be at par with the best in industry in six months with margins over 20 per cent," Gurnani said.

That will mean most of the employees from the 10,000 strong virtual pool will have to go. After all, the employee cost of over 70 per cent to revenue is bleeding the margins.

"We will get to around 60 per cent employee cost in six months. The cost is still very high. Other costs like SG&A is at 28 per cent. We will try and bring that down also."

However, new revelations are still coming. Ramalinga Raju had not just fudged revenues but the total client base number was also fudged.

"Clients are 380. The real number was 500, not 600. We lost 100 and have added 22, mostly midsized."

Well, Gurnani is a confident man. He says the worst is over for Mahindra Satyam. The revenue has bottomed to under $1.3 billion. Come December and he will have decent set of results to show.

source: NDTVPROFIT

0 comments:

Post a Comment

Disclaimer

Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. The blogs/posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes. Stock quotes are believed to be accurate and correctly dated, but Stockxnews does not warrant or guarantee their accuracy or date.
 
Design by SXN. Converted To Blogger Template By SXN .