Satyam Operating Margins Look Real


I pulled this chart together on our very own research platform just to see if there were any signs in the operating margins that Satyam was managing earnings. I found none.

The comparables to Satyam (SAY) are Infosys, Wipro and Cognizant. Satyam’s range of the operating margins is just fine. The seasonality caused by the annual influx of trainees through campus hiring is also there. I couldn’t figure out why the dip was a quarter later than Infosys but there is probably a rational reason for that.

Also present is the uptick in margins in the last couple of quarters, which is presumably because of the favourable movement in exchange rates.

Managed earnings should leave some fingerprints. I couldn’t find any. So either Raju and co were very, very careful with how they were managing the earnings. Or, they weren’t managing earnings at all and the money has actually gone missing.


  1. Alok says:

    Someone should speak in favour of Mr Ramalinga Raju too ( he cant be so bad a person )
    When big corporations all over the world fail , economies flatten and general masses loose jobs we start questioning anything and everything and big bosses like Madoff and our own Ramalinga Raju are found to be culprit . Looking at them from realms of modern thinking where all rules and human conduct is confined to papers and legal frameworks we feel they are culprits but putting on our old spects ( not so old maybe 10-15 years back ) and analysing atleast the cherubic faced Raju and exhausted Madoff we feel they cant be totally wrong doers.


  2. Alok says:

    When big film stars and dirty politicians break law almost evry day and are totally oblivious and ignorant to madern world documented rules they escape very easily and lead a very lavish and fulsilling life , but when rules are broken ( mostly unkowingly and also becuase the modern workd rules are so confusing and overlapping ) by hard working people like Raju who apart from building his corporation from a very early age would have lead a very saintly life gets this back this in return .


  3. Alok1 says:

    Does this teach us that the people who set out challenging paths for themselves and who really want to do general good of entire society always end up like Rajus and Madoffs and people who dont study hard in schools , follow their heart ( mostly for their selfishness ) always get all the pleasures of this world money/accolades ? __ I am no way related to Mr. Raju or work in Satyam but i know the employees of this company are happier than many other Indian companies who confine themselves to the strict framework of corporate conduct and the employees end up being slaves of system , their bosses , western world and at last slaves of their slavish habits.__ May someone show Indians the real way ahead !!!


  4. Krishna says:

    Not surprising. Crooks are always meticulous and Satyam management as we know now was clearly one. It obviously will not like to be dwarfed by the other three while at a pitch. Operating margins being a critical element for vendor selection, it must have taken lead from the others that have publicized their results before. Satyam has always been the last one, after having digested others figures and `synthesized' its own 🙂


  5. Vaibhav says:

    If operating margins are look real, then the only explaination is that the money was later siphoned off to do other things (like aquire land for Raju or Maytas)…


  6. Anonymous says:

    Couple of More Scandals to Come:

    There are couple of more scandals which will raise its ugly heads, if it is not dealt with firmly and systematically.

    – Completely Fake CV

    In IT industry many people not only fake their computer skills, but they also fake their
    educational details (B.S./B.E., 10th and 12th standards). More shamefully, some even change their date of birth, parents name also!!

    One state in particular from India is (in)famous for that and the pervasive feeling is –
    it is their birthright!

    – Shameless Nepotism/Xenophobia (for lack of better words!)

    Another bunch shamelessly talk in their native language all the time, promote their own people and have particular problem in mixing with any other culture from India. Result: only promote those people who speak their native tongue, recruit those people who speak the same native tongue and so on.

    This is done by another state from India (not the first one) is (in)famous. Soley due to that reason, the culture in many IT companies have gone southbound. You start recruiting a D grade based on regional bias, he starts recruiting E, F and so on.

    I guess everyone in Indian IT knows about these 2 states/regions.

    However, the selective amnesia that the IT companies are now displaying with their penchant for “situational integrity/honesty” in firing these people in these hard times – I do not know whom they are fooling! How come the same guy was allowed to continue for 2 years earlier? How come the same person was allowed to lead impressionable rookies from colleges as a manager? IT companies themselves are to blame for that. Another corrupt spot is IT Job Consultancies who have helped in mushrooming the above two. As I work many people from the aforementioned 2 states, I shall remain anonymous for this one.


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