Tech Mahindra profit rises 23 pct, beats estimates

BANGALORE Mon Nov 5, 2012 6:13pm IST

Employees work on their computer terminals on the floor of an outsourcing centre in Bangalore February 29, 2012. REUTERS/Vivek Prakash/Files

Employees work on their computer terminals on the floor of an outsourcing centre in Bangalore February 29, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

BANGALORE (Reuters) - Tech Mahindra Ltd (TEML.NS), the IT outsourcing business of India's $15 billion Mahindra Group, b e at expectations with a 23.3 percent rise in second-quarter profit, boosted by increased client spending and a good performance at its unit Satyam Computer Services Ltd (SATY.NS).

Profit for the September quarter rose to 2.96 billion rupees from 2.4 billion rupees in the year-earlier period, Tech Mahindra said in a statement on Monday. That compares with analysts' average estimate of 2.48 billion rupees, according to Thomson Reuters I/B/E/S.

India's $100 billion-per-year IT industry earns more than 90 percent of its revenue from services including maintaining computer systems and networks and software applications, and back-office support. The sector gets some three quarters of its revenue from the United States and Europe. Australia is also a big market for the sector.

Tech Mahindra, which is in the process of merging Satyam Computer with itself, may finish the task ahead of schedule, Executive Vice Chairman Vineet Nayyar said last week.

Billionaire Chairman Anand Mahindra, who bought Satyam in a government-sponsored sale in 2009, is seeking to create a consolidated IT services powerhouse by merging Satyam and Tech Mahindra, which provides software services to clients such as BT Group Plc (BT.L) and SAAB AB (SAABb.ST). (Reporting By Harichandan Arakali; Editing by Jijo Jacob)

FILED UNDER:

Reuters Showcase

Uber's Woes

Uber's Woes

Uber, other taxi-hailing apps hit new roadblock in Delhi.  Full Article 

Transfer Pricing

Transfer Pricing

India's Vodafone decision eases tax worries for Shell, others.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook tops Wall Street revenue target in 4th quarter.  Full Article 

Governance Reforms

Governance Reforms

IMF sets June deadline for progress on governance reforms.  Full Article 

Fed's Stance

Fed's Stance

Fed upbeat on U.S. economy, cites strong job gains.  Full Article 

Tumultuous Run

Tumultuous Run

McDonald's CEO Don Thompson leaving.  Full Article 

Samsung Results

Samsung Results

Samsung Elec's smartphone primacy under threat from Apple after weak Q4.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage