Satyam has a new owner, a bloated payroll and a relatively challenging marketplace to compete in.
It seems the company is well on its way to a recovery after its promoter confessed to India's largest corporate fraud at the start of the year.
Well, is Satyam Computers, now Mahindra Satyam, back on track or is it the stock market's
anticipation of its future business that is helping the company's valuations to rise?
NDTV had an exclusive chat with Vineet Nayyar, VC and MD of Tech Mahindra on the current status of the newly acquired company.
On January 6, before Ramalinga Raju's confession, the market cap of Satyam was Rs 12,050 crore and at last Friday's close it was Rs 12,131 crore, higher than the pre-scandal level. The market has been generous to the stock.
On being asked what’s happening, Nayyar said, “It’s after long time, one can say it’s positive.”
Of course, there has also been stability on the client side. Mahindra Satyam has added 25 new clients, who present a opportunity to re-build business.
Adding to the confidence of management has been the delivery of Satyam professionals.
“The delivery front in Satyam was always its strength. What was worrying them was governance, Nayyar said.”
Well, on the revenue front, confidence is yet to return fully. This, despite the recent revenue projection of between $1.1-$1.3 billion, down from earlier expectations of $1.3billon.
“I think its going to be about 6-8 months before we can talk,'' said Nayyar.
However, Nayyar ended it off aptly when asked about the timeline for the merger of Satyam into Tech Mahindra—you got to date for a while before getting married.
s: NP
It seems the company is well on its way to a recovery after its promoter confessed to India's largest corporate fraud at the start of the year.
Well, is Satyam Computers, now Mahindra Satyam, back on track or is it the stock market's
anticipation of its future business that is helping the company's valuations to rise?NDTV had an exclusive chat with Vineet Nayyar, VC and MD of Tech Mahindra on the current status of the newly acquired company.
On January 6, before Ramalinga Raju's confession, the market cap of Satyam was Rs 12,050 crore and at last Friday's close it was Rs 12,131 crore, higher than the pre-scandal level. The market has been generous to the stock.
On being asked what’s happening, Nayyar said, “It’s after long time, one can say it’s positive.”
Of course, there has also been stability on the client side. Mahindra Satyam has added 25 new clients, who present a opportunity to re-build business.
Adding to the confidence of management has been the delivery of Satyam professionals.
“The delivery front in Satyam was always its strength. What was worrying them was governance, Nayyar said.”
Well, on the revenue front, confidence is yet to return fully. This, despite the recent revenue projection of between $1.1-$1.3 billion, down from earlier expectations of $1.3billon.
“I think its going to be about 6-8 months before we can talk,'' said Nayyar.
However, Nayyar ended it off aptly when asked about the timeline for the merger of Satyam into Tech Mahindra—you got to date for a while before getting married.
s: NP
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