India's Mahindra Satyam quarterly net profit up 17%
Tuesday, 30 October 2012
MUMBAI: Indian software outsourcing giant Mahindra Satyam said Tuesday its quarterly net profit rose 17 percent year-on-year, beating forecasts, as orders climbed.
The company, which is set to merge with its parent Tech Mahindra, said net profit rose to 2.78 billion rupees ($51 million) for the three months to September 30, from 2.38 billion rupees in the same period last year.
Analysts had forecast a profit of 2.70 billion rupees for the Hyderabad-based firm for the financial second quarter.
Revenue rose 23 percent to 19.38 billion rupees in the quarter.
"With investments in new infrastructure and focus on strengthening partnerships, Mahindra Satyam is firing on all engines," said chief executive C.P. Gurnani in a statement to the Bombay Stock Exchange.
Satyam stunned corporate India in 2009 when its founder B. Ramalinga Raju admitted he had for years overstated profits and inflated the company's balance sheet by more than one billion dollars.
It was India's biggest ever corporate fraud and nearly pushed the group into bankruptcy. Raju, who was once a star of India's software boom, is now on bail facing charges of conspiracy, cheating and forgery.
Tech Mahindra, a unit of Indian vehicle and farm equipment manufacturer Mahindra and Mahindra, bought a 42.7-percent stake in Satyam Computer after the scandal broke.
The company has since operated under the name Mahindra Satyam.
In March Tech Mahindra announced plans for a merger with Satyam to create a new IT force with annual revenue of $2.26 billion.
Most of India's IT outsourcing firms see the outlook as difficult because of uncertainty in their key US and European markets. (AFP)