Upload
angel-broking
View
230
Download
0
Embed Size (px)
Citation preview
7/30/2019 Satyam 4Q FY 2013
1/12
Please refer to important disclosures at the end of this report 1
Y/E March (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Net revenue 1,936 1,940 (0.2) 1,666 16.2EBITDA 389 418 (7.0) 292 33.5
EBITDA margin (%) 20.1 21.6 (146)bp 17.5 260bp
Adj. PAT* 320 374 (14.4) 425 (24.6)Source:Company, Angel Research; Note: * excluding exceptional items
Mahindra Satyam (Satyam) reported in-line net profit for 4QFY2013 while
disappointed on the operational front. Volume growth was decent at 2.0% qoq.
The company added 60 new clients during the quarter. Satyam has declared
dividend of 30% (`0.6 per share) for the first time post 2009 crisis as the
turnaround for Satyam is symbolically complete and the company now seems to
be in good shape. We maintain our Buy rating on the stock.Quarterly highlights: For 4QFY2013, Satyam reported revenue of US$359mn, up0.8% qoq. In INR terms, the revenue came in at `1,936cr, down 0.2% qoq. The
companys EBITDA margin declined by 146bp qoq to 20.1%, owing to
normalization of provision reversal done in 3QFY2013. Adjusted PAT came in at
`320cr, down 14% qoq, impacted by lower other income of `72cr as against
`111cr in 3QFY2013.
Outlook and valuation: The new Management has proved its ability of turningaround the company in three years time by putting it back to comparable
industry level growth and improving margins from 8.3% in FY2010 to 16.0% inFY2012 and 21.2% in FY2013. Management cited that the company is getting
invited for more number of large deals but the win ratio of company still stands
much lower than the industry standards. To focus on this, the company has set up
a team to increase the momentum of deal wins. We expect the companys core
competence in EBS to supplement growth and post a 9.2% and 8.5% CAGR in
USD and INR revenue, respectively, over FY2013-15E. The Management
indicated that the proposed Tech Mahindra - Satyam merger had been approved
by the Bombay High Court, while it awaits the Andhra Pradesh High Court
approval. Management indicated that hearings at Andhra Pradesh High Court are
complete and the judgment has been reserved and expects that the judgment will
become available in the first two weeks of June. We value the stock at 11x FY2015EEPS, which gives a target price of `126. We maintain our Buy rating on the stock.Key financials (Consolidated, Indian GAAP)Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ENet sales 5,145 6,396 7,693 8,278 9,062% chg (6.1) 24.3 20.3 7.6 9.5
Net profit* 494 1,197 1,324 1,237 1,342% chg 68.9 142.4 10.7 (6.6) 8.4
EBITDA margin (%) 8.8 16.0 21.2 20.3 20.1
EPS (`) 4.2 11.1 9.9 10.5 11.4P/E (x) 26.0 9.8 11.0 10.4 9.6
P/BV (x) 7.4 4.3 3.1 2.4 1.9
RoE (%) 28.6 40.1 32.1 23.1 20.0
RoCE (%) 7.4 19.0 25.8 21.5 19.5
EV/Sales (x) 2.0 1.6 1.3 1.1 0.9
EV/EBITDA (x) 22.2 9.8 6.1 5.6 4.6
Source: Company, Angel Research; Note: *Excluding exceptional items
BUYCMP `109
Target Price `126
Investment Period 12 Months
Stock Info
Sector
Net debt (`cr) (2,900)
Bloomberg Code SCS@IN
Shareholding Pattern (%)
Promoters 42.6
MF / Banks / Indian Fls 9.1
FII / NRIs / OCBs 30.4Indian Public / Others 17.9
Abs. (%) 3m 1yr 3yr
Sensex 11.5 26.3 19.1
Mahindra Satyam 49.9 57.6 24.0
Face Value (`)
IT
Avg. Daily Volume
Market Cap (`cr)
Beta
52 Week High / Low
12,853
0.6
2
131/66
BSE Sensex
Nifty
Reuters Code
20,247
6,170
SATY.BO
686,306
Ankita Somani+91 22 39387800 Ext: 6819
Mahindra SatyamPerformance highlights
4QFY2013 Result Update | IT
May 16, 2013
7/30/2019 Satyam 4Q FY 2013
2/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 2
Exhibit 1:4QFY2013 performance (Consolidated, Indian GAAP)
Y/E March (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Net revenue 1,936 1,940 (0.2) 1,666 16.2 7,693 6,396 20.3Direct costs 1,161 1,104 5.2 1,020 13.8 4,516 3,959 14.1Gross profit 775 836 (7.3) 645 20.0 3,178 2,437 30.4
SG&A expenses 385 417 (7.6) 354 8.9 1,545 1,413 9.4
EBITDA 389 418 (7.0) 292 33.5 1,632 1,024 59.4Dep. and amortizat ion 61 36 69.7 42 47.6 190 158 20.2
EBIT 328 382 (14.2) 250 31.1 1,443 866 66.5
Interest charges 4 3 23.6 3 59.3 13 12 13.1
Other income 72 111 73 318 419
PBT 396 490 (19.2) 320 23.7 1,747 1,273 37.2
Tax 75 112 (33.3) (94) (179.4) 412 85 384.2
PAT 321 378 (14.9) 414 (22.5) 1,335 1,188 12.3
Exceptional item (134) 294 (109) 160 (109)
Minority interest 1 4 (68.4) (10) (111.5) 10 (8) (224.1)
Final PAT 454 80 467.8 534 (15.0) 1,164 1,306 (10.9)
Adj. PAT* 320 374 (14.4) 425 (24.6) 1,324 1,197 10.7EPS* (`) 3.9 0.7 467.8 4.5 (15.0) 9.9 11.1 (10.9)
Gross margin (%) 40.0 43.1 (306)bp 38.7 127bp 41.3 38.1 321bp
EBITDA margin (%) 20.1 21.6 (146)bp 17.5 260bp 21.2 16.0 521bp
EBIT margin (%) 16.9 19.7 (277)bp 15.0 193bp 18.8 13.5 522bp
PAT margin (%) 15.9 18.2 (230)bp 24.4 (850)bp 16.5 17.6 (103)bp
Source: Company, Angel Research; Note: *Excluding exceptional items
Exhibit 2:Actual vs Angel estimates
(` cr) Actual Estimate % Var.Net revenue 1,936 1,964 (1.4)
EBITDA margin (%) 20.1 21.7 (156)bp
PAT 320 312 2.7
Source: Company, Angel Research
Soft results
For 4QFY2013, Satyam reported revenue of US$359mn, up 0.8% qoq, majorly
led by a 2.0% qoq volume growth. Cross currency movement impacted the dollar
revenue growth negatively. In INR terms, the revenue came in at `1,936cr, down
0.2% qoq. In INR terms, IT services revenue grew by 1.2% qoq to `1,890cr. BPO
reported a 28% qoq decline in revenues after a 17.9% qoq jump seen in revenues
in 3QFY2013.
7/30/2019 Satyam 4Q FY 2013
3/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 3
Exhibit 3:Trend in revenue growth (qoq)
Source: Company, Angel Research
Industry-wise, the companys anchor industry segment, manufacturing, led the
companys growth during the quarter by posting 10.2% qoq growth in revenues.
Management indicated that the deal pipeline in manufacturing industry vertical
continues to be strong particularly in the US. In Europe, countries such as
Germany, France and Sweden are showing good signs of growth in terms of
revenues from manufacturing vertical and expect APAC to continue to be a strong
contributor in manufacturing. Revenues from BFSI and retail & logistics (which were
major growth drivers in 3QFY2013) declined by 3.0% and 5.7% qoq, respectively.
The decline in revenues from retail is because in the last quarter retail had a one
time in the BPO space and that one-off revenue got over during this quarter. Thetechnology, media and entertainment (TME) industry segment reported a 1.4% qoq
growth in revenues. The company is witnessing IT spending from retail and
manufacturing clients who are focusing on cutting costs and driving efficiencies. In
BFSI, IT spend is coming from areas such as risk, compliance management and
regulatory issues. The Management indicated that they are hopeful of pickup in
revenue growth in FY2014 aided by new logo wins and deal wins across all the
industry segments.
Exhibit 4:Growth in industry segments
Particulars % to revenue % growth (qoq) % growth (yoy)Manufacturing 36.0 10.2 22.5
TME (includes telecom also) 22.1 1.4 14.6
BFSI 19.2 (3.0) 10.0
Retail and logistics 11.2 (5.7) 10.8
Healthcare and lifesciences 5.2 (12.5) (5.7)
Others 6.2 (10.6) (38.6)
Source: Company, Angel Research
Geography-wise, growth was led by America, the revenue from which grew by
4.9% qoq. Revenue from Europe was soft with 7.4% qoq decline. The Management
indicated that the deal pipeline remains healthy from emerging geographies,where MNCs are trying to expand their footprints.
332
342
354 356359
2.2
2.9
3.5
0.6
0.8
0
1
2
3
4
300
310
320
330
340
350
360
370
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
(US$mn)
Revenue (US$mn) qoq growth (%)
7/30/2019 Satyam 4Q FY 2013
4/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 4
Exhibit 5:Growth trend in geographies
Particulars % to revenue % growth (qoq) % growth (yoy)Americas 54.0 4.9 15.3
Europe 22.0 (7.4) (0.2)RoW 24.0 1.0 4.5
Source: Company, Angel Research
Hiring and client metrics
During the quarter, the company witnessed reduction of 889 employees, taking its
total employee base to 36,067 as the company working towards resource
optimization. The attrition rate of the company increased to 14.3% from 13.1% in
3QFY2013. The company has give 2,000 offers to campus graduates for CY2014
and going ahead lateral hiring will be done keeping in mind the demand scenario
and signs from the macroeconomic environment.
Exhibit 6:Employee metrics
Particulars 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13Net employee addition 1,073 2,643 791 169 (889)
Total employees 33,353 35,996 36,787 36,956 36,067
Attrition (%) 15.0 14.1 13.1 13.1 14.3
Source: Company, Angel Research
The companys client metrics saw some qualitative movement with clients getting
added in higher revenue brackets. The company witnessed addition of two clientsin US$20mn-50mn revenue bracket. The total active client base of the company
stood at 385 as against 368 in 3QFY2013. The companys growth was driven by
top 5 clients which reported revenue growth of 4.7% qoq while growth from non
top 10 clients remained tardy with non top-10 clients posting just 0.8% qoq
revenue growth. The company added 60 new clients during the quarter.
Exhibit 7:Client metrics
Particulars 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13Total active clients 314 372 363 368 385
US$1mn5mn 83 94 101 98 95
US$5mn10mn 13 21 23 23 26
US$10mn20mn 17 14 15 17 13
US$20mn50mn 13 12 10 11 13
US$50mn+ 3 4 5 5 5
Source: Company, Angel Research
Operating margins decline
During the quarter, the companys EBITDA margin declined by 146bp qoq to
20.1%, owing to normalization of provision reversal done in 3QFY2013 (one-off
provision reversal of `35.5cr done in 3QFY2013 on account of certain approvals
accrued towards employee bonus). EBITDA margin for FY2013 expanded by
520bp with forex contributing ~370bp of the margin expansion and operation
improvements the remaining. Management commentary indicated increased
7/30/2019 Satyam 4Q FY 2013
5/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 5
confidence in maintaining margins at similar levels on a constant currency basis.
Going ahead, the Management indicated that it will keep focusing on three
margin levers: 1) employee pyramid rationalization, 2) utilization improvement
and 3) G&A efficiencies. However, each of these levers has limited slack goingforward.
Exhibit 8:Margin profile
Source: Company, Angel Research
PAT came in at `454cr, aided by one-time exceptional gain of `134cr. Adjusted
net profit declined by 14% qoq impacted by lower other income of `72cr as
against `111cr in 3QFY2013. Over the last two years Satyam had a number of
exceptional items with some like class action suit having cash impact. We note that
going forward predictability of earnings would be higher as most provisions/class
action suit/reversals are done with.
Outlook and valuation
The new Management has proved its ability of turning around the company in
three years time by putting it back to comparable industry level growth and
improving margins from 8.3% in FY2010 to 16.0% in FY2012 and 21.2% in
FY2013. Satyam has declared dividend of 30% (`0.6 per share) for the first time
post 2009 crisis as the turnaround for Satyam is symbolically complete and the
company now seems to be in good shape.
Management cited that the company is getting invited for more number of large
deals but the win ratio of company still stands much lower than the industry
standards. To focus on this, the company has set up a team to increase the
momentum of deal wins. Management indicated that it sees better revenue growth
in FY2014 aided both by decent logo wins and healthy deal pipeline across
verticals such as manufacturing, retail and healthcare.
Satyam has successfully addressed its key concern areas in the past three years of
client mining, employee retention, margin expansion, and dispute resolution.
Satyam has enterprise business solutions (EBS; ~40% of its revenue) and
manufacturing (~34% of its revenue) showing modest traction. The company
expects this service and vertical respectively to bolster growth and help it to track
the industrys growth rate. We expect the companys core competence in EBS to
38.741.1 41.0 43.1 40.0
17.5
21.7 21.5 21.620.1
15.019.1 19.3
19.7
16.9
10
15
20
25
30
35
40
45
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
Gross margin EBITDA margin EBIT margin
7/30/2019 Satyam 4Q FY 2013
6/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 6
supplement growth and post a 9.2% and 8.5% CAGR in USD and INR revenue,
respectively, over FY2013-15E.
The Management indicated that the proposed Tech Mahindra - Satyam merger
had been approved by the Bombay High Court, while it awaits the Andhra Pradesh
High Court approval. Management indicated that hearings at Andhra Pradesh
High Court are complete and the judgment has been reserved and expects that the
judgment will become available in the first two weeks of June.
On the operating front, Management still believes that further improvement in
employee utilization, experience pyramid and SG&A leverage will help mitigate
some of the margin headwinds in constant currency. However, each of these levers
has limited slack going forward and would not derive any meaningful uptick in
operating margins from current levels. We expect EBITDA margin to be at 20.3%
and 20.1% in FY2014 and FY2015 from 21.2% in FY2013. At the current market
price of `109, the stock is trading at 9.6x FY2015E EPS of `11.4. We value thestock at 11x FY2015E EPS, which gives a target price of `126. We maintain ourBuy rating on the stock.Exhibit 9:Key assumptionsParticulars FY2014 FY2015Revenue growth - USD terms (%) 9.0 9.4
Revenue growth - INR terms (%) 7.6 9.5
EBITDA margin (%) 20.3 20.1
EBIT margin (%) 17.8 17.6
Tax rate (%) 27.0 28.0EPS growth (%) 6.3 8.4
Source: Company, Angel Research
Exhibit 10:One-year forward PE(x) chart
Source: Company, Angel Research
0
20
40
60
80
100
120
140
160
180
200
Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-1
(`)
Price 16x 13x 10x 7x 4x
7/30/2019 Satyam 4Q FY 2013
7/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 7
Exhibit 11:Recommendation summary
Company Reco. CMP Tgt. price Upside FY2015E FY2015E FY2012-15E FY2015E FY2015E(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) EV/Sales (x) RoE (%)
HCL Tech Buy 738 863 17.0 20.7 12.0 19.6 1.4 21.5Hexaware Buy 78 96 23.2 18.8 6.9 8.3 0.8 21.7
Infosys Accumulate 2,332 2,465 5.7 27.7 12.8 7.9 2.1 19.3
Infotech Enterprises Accumulate 171 185 8.4 17.7 7.8 14.7 0.5 13.7
KPIT Cummins Buy 102 135 31.8 15.5 7.3 20.3 0.5 16.6
Mahindra Satyam Buy 109 126 15.4 20.1 9.6 0.9 0.9 20.0MindTree Accumulate 836 920 10.1 19.2 9.1 19.8 0.8 18.9
Mphasis Reduce 447 395 (11.6) 17.4 10.8 3.3 0.8 13.6
NIIT^ Buy 23 30 33.3 9.1 4.2 (7.1) 0.0 11.9
Persistent Accumulate 526 593 12.7 25.0 8.9 18.7 0.8 16.5
TCS Accumulate 1,454 1,585 9.0 27.9 16.5 17.4 3.2 27.9
Tech Mahindra Buy 942 1,180 25.3 18.1 8.2 10.7 1.4 19.1
Wipro Accumulate 347 385 10.9 20.6 12.2 7.9 1.3 18.4
Source: Company, Angel Research; Note: ^Valued on SOTP basis
Company Background
Mahindra Satyam (erstwhile Satyam Computers) was incorporated by Raju brothers
in 1987, with a strong focus on the manufacturing industry and the enterprise
business solutions vertical. The Mahindra Group acquired Satyam in April 2009
after the erstwhile founders reported financial irregularities in January 2009 and it
is now back on its growth track after two years of metamorphosis undertaken by
Tech Mahindra's Management. The company's new Management took over its
reins and has again put the company on the map of the Indian IT industry (sixth
largest Indian IT services provider) with improved business flow, strong client
mining and better margins.
7/30/2019 Satyam 4Q FY 2013
8/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 8
Profit and loss statement (Consolidated, Indian GAAP)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ENet revenues 5,145 6,396 7,693 8,278 9,062Employee costs 3,594 3,959 4,516 4,900 5,381Gross profit 1,551 2,437 3,178 3,378 3,681
% to net sales 30.1 38.1 41.3 40.8 40.6
SG&A expenses 1,096 1,413 1,545 1,697 1,858
% to net sales 21.3 22.1 20.1 20.5 20.5
EBITDA 455 1,024 1,632 1,681 1,823% to net sales 8.8 16.0 21.2 20.3 20.1
Dep. and amortization 185 158 190 207 227
% to net sales 3.6 2.5 2.5 2.5 2.5
EBIT 270 866 1,443 1,474 1,597
% to net sales 5.3 13.5 18.8 17.8 17.6
Interest charges 10 12 13 12 12
Other income 294 419 318 254 301
PBT 555 1,273 1,747 1,717 1,886
Tax 58 85 412 464 528
% of PBT 10.4 6.7 23.6 27.0 28.0
PAT 497 1,188 1,335 1,253 1,358
Exceptional item 641 (109) 160 - -
Minority interest 3 (8) 10 16 16
Final PAT (147) 1,306 1,164 1,237 1,342
Adj. PAT* 494 1,197 1,324 1,237 1,342EPS (`)* 4.2 11.1 9.9 10.5 11.4
Note: * excluding exceptional item
7/30/2019 Satyam 4Q FY 2013
9/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 9
Balance sheet (Consolidated, Indian GAAP)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ELiabilitiesShare capital 235 235 235 235 235Share app. money pending allotment - 0 0 0 0
Reserves and surplus 1,490 2,752 3,890 5,127 6,469
Total shareholders' funds 1,725 2,987 4,125 5,363 6,705Minority interest 23 15 25 41 57
Loan funds 22 23 22 22 22
Deferred tax liability 7 2 2 2 2
Other long-term liability 1 3 3 3 3
Long term provisions 650 294 187 187 187
Sub-total 2,428 3,324 4,365 5,618 6,976Amt pending investigation suspense 1,230 1,230 1,230 1,230 1,230
Total capital employed 3,658 4,554 5,595 6,849 8,206AssetsFixed assets 881 974 1,075 1,048 1,002
Goodwill 35 35 140 140 140
Investments - 35 35 35 35
Deferred tax asset 8 170 198 218 238
Loans and advances 180 176 204 254 304
Other current assets 12 6 28 128 278
Current assets, loans and advancesInventories 59 15 - - -
Sundry debtors 1,126 1,402 1,780 1,928 2,110
Cash and bank balances 2,745 2,852 2,922 3,432 4,413
Other current assets 877 608 612 891 1,018
Loans and advances 186 692 957 1,325 1,450
Less: Current liab. and provisions
Sundry creditors 634 598 539 591 649
Liabilities 895 797 886 966 1,046
Provisions 923 1,014 932 993 1,087
Net current assets 2,541 3,158 3,915 5,025 6,209Profit and loss account - - - - -
Sub-total 3,658 4,554 5,595 6,849 8,206Unexplained diff. suspense acc. (net) - - - - -
Total capital deployed 3,658 4,554 5,595 6,849 8,206
7/30/2019 Satyam 4Q FY 2013
10/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 10
Cash flow statement (Consolidated, Indian GAAP)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015EPre tax profit from operations 261 855 1,430 1,462 1,585
Depreciation 185 158 190 207 227Pre tax cash from operations 445 1,012 1,619 1,669 1,811
Other income/prior period ad 294 419 318 254 301
Net cash from operations 740 1,431 1,937 1,924 2,112
Tax 58 85 412 464 528
Cash profits 679 1,354 1,514 1,444 1,568
(Inc)/dec in current assets (445) (468) (633) (794) (435)
Inc/(dec) in current liabilities 30 (43) (53) 193 232
Net trade working capital (415) (511) (686) (601) (203)
Cash flow from operating activities 263 844 828 843 1,365(Inc)/dec in fixed assets (79) (251) (291) (180) (180)
(Inc)/dec in investments 627 (35) - - -
(Inc)/dec in deferred tax 1 (167) (29) (20) (20)
(Inc)/dec in other non-current assets 3,210 (351) (146) (134) (184)
Inc/(dec) in minority interest (35) - (105) - -
Cash flow from investing activities 3,724 (804) (570) (334) (384)Inc/(dec) in debt (20) 1 (1) - -
Inc/(dec) in equity/premium (3,399) 66 (104) 83 83
Dividends - - (83) (83) (83)
Cash flow from financing activities (3,419) 67 (187) 0 0Cash generated/(utilized) 568 107 71 509 981
Cash at start of the year 2,177 2,745 2,852 2,922 3,432
Cash at end of the year 2,745 2,852 2,922 3,432 4,413
7/30/2019 Satyam 4Q FY 2013
11/12
Mahindra Satyam | 4QFY2013 Result Update
May 16, 2013 11
Key ratios
Y/E March FY2011 FY2012E FY2013E FY2014E FY2015EValuation ratio (x)P/E (on FDEPS) 26.0 9.8 11.0 10.4 9.6P/CEPS 18.9 8.8 9.5 8.9 8.2
P/BVPS 7.4 4.3 3.1 2.4 1.9
Dividend yield (%) - - 0.5 0.5 0.5
EV/Sales 2.0 1.6 1.3 1.1 0.9
EV/EBITDA 22.2 9.8 6.1 5.6 4.6
EV/Total assets 2.8 2.2 1.8 1.4 1.0
Per share data (`)EPS 4.2 11.1 9.9 10.5 11.4
Cash EPS 5.8 12.5 11.5 12.3 13.3
Dividend - - 0.6 0.6 0.6
Book value 14.7 25.4 35.1 45.6 57.1
Dupont analysisTax retention ratio (PAT/PBT) 0.9 0.9 0.8 0.7 0.7
Cost of debt (PBT/EBIT) 2.1 1.5 1.2 1.2 1.2
EBIT margin (EBIT/Sales) 0.1 0.1 0.2 0.2 0.2
Asset turnover ratio (Sales/Assets) 1.4 1.4 1.4 1.2 1.1
Leverage ratio (Assets/Equity) 2.1 1.5 1.4 1.3 1.2
Operating ROE 28.8 39.8 32.4 23.4 20.3
Return ratios (%)RoCE (pre-tax) 7.4 19.0 25.8 21.5 19.5
Angel RoIC 29.6 50.9 54.0 43.2 42.1
RoE 28.6 40.1 32.1 23.1 20.0
Turnover ratios (x)Asset turnover (fixed assets) 5.8 6.6 7.2 7.9 8.0
Receivables days 80 80 84 85 85
Payable days 64 55 44 44 44
7/30/2019 Satyam 4Q FY 2013
12/12
Mahindra Satyam | 4QFY2013 Result Update
May 16 2013 12
Research Team Tel: 022 - 3935 7800 E-mail: [email protected] Website: www.angelbroing.com
DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement Mahindra Satyam
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors