Tech Mahindra profit unchanged, misses estimates

BANGALORE Thu Feb 7, 2013 4:54am 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 the $15.9 billion Mahindra group, posted flat earnings for its third fiscal quarter, falling short of expectations, hurt by a one-off payment at unit Satyam Computer Services (SATY.NS).

Profits for the December quarter was 2.76 billion rupees unchanged from the year-earlier period, Tech Mahindra said on Wednesday. That compares with analysts' average estimate of 3 billion rupees, according to Thomson Reuters I/B/E/S.

Tech Mahindra, which is merging Satyam Computer with itself, is in the penultimate stage of the process, Executive Vice Chairman Vineet Nayyar said last week.

Billionaire chairman Anand Mahindra, purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of the country's biggest accounting frauds.

Last week, Satyam, now called Mahindra Satyam, topped estimates excluding a one-time payment to settle claims by Aberdeen global, related to the accounting fraud. This settlement, reached in December, was the last of such agreements, Nayyar told reporters on January 31.

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 combined company will be India's fifth-largest software services provider, with customers such as BT Group PLC (BT.L), AT&T (T.N) and SAAB (SAABb.ST).

(Reporting by Harichandan Arakali; Editing by Anand Basu)

FILED UNDER:

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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