Mahindra Satyam gives first dividend after scam

Signalling that it had finally hit turnaround street, the scam-hitMahindraSatyam on Thursday declared a dividend of 30% for the first time after it was rocked by the worst corporate scandal in India's history.

 
The dividend declared for fiscal 2012-13 despite an 11% drop in net profit at Rs 1,164 crore as against Rs 1,306 crore in FY12, ends a dry spell of four years as the company had last rewarded its shareholders in 2008-09. However, the company's FY13 revenues rose 20% to Rs 7,693 crore as against Rs 6,396 crore. 

"The turnaround of Mahindra Satyam is symbolically and practically complete, hence we are announcing a dividend for the last financial year and the long wait for our shareholders is over. They are being rewarded for their patience and faith in the company," Mahindra Satyam chairman Vineet Nayyar said here on Thursday while announcing the company's annual results. 

Angel Broking analyst Ankita Somani said, "The new management was trying to turnaround the company for the last few years and now the company seems to be in a good shape. They have ample cash on their books and hence have decided to share it with the shareholders." (Times of India)