“Mahindra Satyam (MS) recently disclosed FY09 and FY10 financials which restores normalcy and sets a base for expectations. However in our view, MS faces a staunch task as it tries to rebuild itself from the ashes driven by (1) weaker competitive positioning (arising from loss of key clients, employees and in some cases in it’s tradional strength areas like engineering services, enterprise solutions), higher employee attrition (currently an industry wide issue however our channel checks indicate that MS was forced to offer higher than peer wage increments in Jan’10 at 25-AA30% in order to retain talent, which should prevent significant margin improvement as well) . Although co has filled in the vacant positions through internal promotions and senior appointments from the parent/Mahindra group; we believe that company faces consolidation before targeting growth ahead.”
“We build in a strong EBITDA margin performance for Mahindra Satyam as we expect them to expand to 15.2% and 17.1% in FY11 and FY12 respectively (V/s 8.3% in FY10) which we believe itself might be a stiff task given the growth pangs that MS faces (expect revenues to decline by ~6% in FY11) as well as margin headwinds emerging from wage increments (our channel checks indicate that MS hiked salaries by ~25-30% across the board in Jan’10 in order to address employee attrition)”
CLICK 2 EARN MONEY :
Earn Credits Worth Rs 50 On Dealivore By Referring Friends And Help Your Friends Get Rs 50 On Dealivore @ WWW.DEALIVORE.COM NOW
VISIT :
STOCKINDIA.SLINKSET.COM>FOR MORE STOCK TIPS AND NEWS****VISIT :
BEST EARN MONEY & BEST WEBSITES INFO
No comments:
Post a Comment