Saturday, August 4, 2012

Mahindra Satyam beats street, Q1 net up 56% at Rs 352 cr


Software services provider Mahindra Satyam  (Satyam Computer Services) first quarter consolidated net profit surged significantly better-than-expected 56% year-on-year (down 34% sequentially) to Rs 352 crore, helped by higher other income and continued demand for outsourcing.

Its consolidated income from operations in April-June rose 31% (13% quarter-on-quarter) to Rs 1,880 crore.

Analysts on average had expected the Mahindra group company to report a net profit of Rs 273 crore on revenue of Rs 1,848 crore, according to CNBC-TV18 estimates.

The company's quarterly margins jumped 480 basis points sequentially to 21.7% and EBITDA (earnings before interest, taxes, depreciation and amortization) rose 40% quarter-on-quarter to Rs 408 crore.

As of June 30, Mahindra Satyam had 372 clients. The attrition rate declined to 13.5%, compared with 17.3% a year ago.

In April-June, the company's other income rose to Rs 134 crore from Rs 98 crore in the year ago quarter.

In March this year, another Mahindra group company, Tech Mahindra had announced the long anticipated merger of Mahindra Satyam. Satyam shareholders will get one share of Tech Mahindra for every Satyam share held, in view of the merger.

Tech Mahindra had already acquired near 43% stake in the company in 2009, when the company was engulfed in an accounted scandal involving its founder Ramalinga Raju.

Mahindra Satyam shares closed almost flat at Rs 83.75 on NSE on Thursday. The results were announced after the market closed.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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