Corporate Aug 2, 2012
Satyam Computer Services , which is in the process of a merger with parent Tech Mahindra , reported an 56.4 percent rise in quarterly profit, beating expectations after winning orders including a key contract from a metals and finance company.
Profits for the first quarter ended June 30 rose to Rs 352 crore from Rs 225 crore in the year-earlier period, Satyam said in a statement. That compares with analysts' estimate of Rs 27o crore
Billionaire Anand Mahindra had purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of India's largest accounting frauds.
Mahindra is seeking to create a consolidated IT services powerhouse by merging Satyam and Tech Mahindra, which provide software services to clients mostly in the United States, Europe and Australia.
Tech Mahindra, which owns close to 43 percent of Satyam, is offering one share in itself for every 8.5 shares of Satyam to absorb the company, they said in March.
Shares of Satyam, valued at about $1.8 billion, have risen almost 30 percent this year, compared with a 7.6 percent fall in the sector index dragged down by Infosys.
Last month, Infosys, which has lost about one-fifth of its market value this year, had cut its sales growth forecast for the current fiscal year.
Top-ranked Tata Consultancy Services , however, beat estimates and said it expected to beat the industry export revenue growth forecast of 11-14 percent by an industry lobby.
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