Satyam Computer profit before one-off loss tops estimates

BANGALORE Thu Jan 31, 2013 5:01pm IST

A security guard stands outside the head office of Satyam Computer Services in Hyderabad January 7, 2009. REUTERS/Krishnendu Halder/Files

A security guard stands outside the head office of Satyam Computer Services in Hyderabad January 7, 2009.

Credit: Reuters/Krishnendu Halder/Files

Related Topics

Stocks

   

BANGALORE (Reuters) - Satyam Computer Services Ltd(SATY.NS) handily beat expectations with a 20.6 percent rise in third-quarter profit before a one-off loss, joining larger rivals like Infosys(INFY.NS) in signalling a pickup in outsourcing spend.

The company, now called Mahindra Satyam, is in the last lap of a merger with parent Tech Mahindra Ltd (TEML.NS). Profits for the December quarter rose to 3.74 billion rupees from 3.10 billion rupees a year earlier, the company said on Thursday. That compares with analysts' estimate of 2.81 billion rupees, according to Thomson Reuters I/B/E/S.

Profit after the one-off loss of 2.94 bln rupees was 800 million rupees, Satyam said.

Satyam paid $68 million to Aberdeen Global and 22 funds to fully settle claims related to an accounting fraud that led to the sale of the Hyderabad-based company to Tech Mahindra, the company had said on December 13.

Satyam was sold in a government-backed auction in 2009 after its founder and former chairman admitted to one of the country's biggest accounting frauds.

A surprise increase by second-ranked Infosys (INFY.NS) in revenue forecast for the current fiscal year and strong earnings at top-ranked Tata Consultancy Services (TCS.NS) earlier this month prompted speculation of a pickup in outsourcing spending in the sector's biggest market, the United States.

Such a pickup would help Satyam's parent Tech Mahindra accelerate its growth towards its aim of doubling consolidated revenue to about $5 billion in 2015. The combined company would be India's fifth-largest software services provider, with customers such as BT Group PLC and SAAB AB.

Tech Mahindra owns close to 43 percent of Satyam. It is offering one share in itself for every 8.5 shares of Satyam to absorb the company. The merger may be complete by March, the company had said.

(Reporting by Harichandan Arakali; Editing by Anand Basu)

FILED UNDER:

SAARC Summit

REUTERS SHOWCASE

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan.  Full Article 

OPEC Oil Talks

OPEC Oil Talks

Saudi, Russia pre-OPEC talks yield no oil output cut  Full Article 

Bird Flu Scare

Bird Flu Scare

India orders culling after bird flu outbreaks in Kerala.  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

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