Declaring the company's turnaround (or perhaps more aptly, resurrection) "symbolically and practically complete", Vineet Nayyar, chairman of Hyderabad-based Mahindra Satyam (MSat) signalled the start of "a new chapter" once the merger with sibling Tech Mahindra finally comes to pass. Nayyar advised that the merger is at its "penulitmate phase" of what will have turned out to be an oft-delayed four-year journey (see ‘Mahindra IT’ marriage delayed again).
Nonetheless, MSat closed a respectable year (to 31st March) with revenues 8% higher at $1.41bn, a growth rate notably faster than much larger peers Infosys (see Infosys limbos under the bar) and Wipro (see Wipro scrapes by). Operating margins were over 5 points higher yoy, at 18.8%, also a creditable performance.
This will be a watershed year for MSat. Management will need to have tight control on the operational levers to ensure that the integration with Tech Mahindra does not result in yet another 'turnaround' – but in the wrong direction!