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Rediff News  All News  » Business » Satyam bags contracts worth $380 million

Satyam bags contracts worth $380 million

June 10, 2009 12:00 IST

Satyam Computer Services, reeling under the impact of India's largest corporate scandal, managed to bag new business orders worth $380 million (around Rs 1,800 crore), as on March 26, 2009. These deals have come from 215 of its existing clients, the company said in a filing to the Bombay Stock Exchange.

Meanwhile, the company lost 66 clients, worth $183 million (around Rs 900 crore) in the same period -- either because contracts were terminated, or they expired, or were withdrawn.

About 23 customers terminated contracts accounting for $70 million as on March 26, 2009.

Moreover, another 24 customers withdrew purchase orders to the tune of $91 million spread over a period of 12 months. However, analysts said the company has been losing clients post-March as a lot of executives from the top management exited the company.

"Some of the top management people who have left must have taken some client accounts with them," said an analyst tracking Satyam.

While both the new owner of Satyam -- Tech Mahindra -- as well as the board of directors have stated that the company has an excess bench of over 10,000, over 2,340 employees left the company in January-February months. In the month of February alone, over 1,600 associates left the company.

Correspondingly, the personnel expenses of the company, on a month-on-month basis, came down considerably. For the month of February, the company paid salary and bonuses to the tune of Rs 420 crore (Rs 4.2 billion), down from Rs 457 crore (Rs 4.57 billion) in January.

From January 9 to March 31 this year, the company had paid Rs 1,026 crore (Rs 10.26 billion) in salaries. At the end of March this year, the company's total headcount stood at 41,622, while its key subsidiaries -- including Satyam BPO -- had an employee strength of 3,828 associates.

Analysts tracking the IT sector believe the salary per employee at Satyam is at par with players like Infosys and Tata Consultancy Services.

"If you look at the January numbers, Satyam's salary per employee would be Rs 13.4 lakh (Rs 1.34 million), which went down to Rs 12.4 lakh (Rs 1.24 million) for the February month. But the January figures are at par with Infosys," an analyst pointed out.

Analysts further add that the February numbers could have fallen as over 1,000 employees left the company.

"This would also mean there is enough room to bring in cost efficiency measures," said the analyst.

BS Reporter in Mumbai