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:

Economic Pulse

Reuters Showcase

S&P on Budget

S&P on Budget

Budget shows commitment to keep fiscal deficit low  Full Article | On Ratings 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Fitch on Budget

Fitch on Budget

India's "less aspiring" fiscal consolidation strategy negative for ratings  Full Article 

Monetary Policy

Monetary Policy

Two policymakers see case for RBI rate cut - report  Full Article 

China Economy

China Economy

China Feb HSBC PMI at seven-month high but more rate cuts seen on the cards  Full Article 

Battling Apple

Battling Apple

Samsung unveils sleek new Galaxy phones  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective  Full Article 

On Rate Hike

On Rate Hike

Insight: Near Fed majority backs June liftoff Yellen hasn't yet endorsed  Full Article 

Reuters India Mobile

Reuters India Mobile

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