India's Satyam posts strong profit growth

Nov 10, 2011

Indian software outsourcer Mahindra Satyam on Thursday said its quarterly net profit soared more than ten-fold, beating market estimates, as demand for outsourcing grew.

The company, recovering from the country's biggest corporate , said net profit rose to 2.38 billion rupees ($49 million) for the three months to September 30 from 233 million rupees in the same period last year.

Analysts had forecast a profit of near two billion rupees for the financial second quarter.

Revenues jumped 27 percent to 15.78 billion rupees, the company said in a statement to the on Thursday.

"We are on course in all our performance indicators -- profitability, growth and talent retention," Vineet Nayyar, chairman of Mahindra Satyam, said in a statement.

"We have shown significant growth momentum, despite the uncertain macro-economic environment," he added.

Mahindra Satyam, formerly known as , stunned India in 2009 when its founder B. Ramalinga Raju admitted he had for years overstated profits and inflated the balance sheet by over $1 billion.

The fraud nearly pushed the group into bankruptcy and Raju, who was once a star of India's software boom, is on bail awaiting trial for conspiracy, cheating and forgery.

Tech Mahindra, a unit of Indian vehicle and farm equipment manufacturer Mahindra and Mahindra, bought Hyderabad-based Satyam after the scandal broke, allaying fears about its survival.

India's top-four software giants -- , Infosys, Wipro and HCL Technologies -- have all shown improved profit growth in the last quarter, helped by a weak Indian rupee and stronger demand for outsourcing.

India's IT and software services sector derives more than 90 percent of its revenues from providing technology services to foreign customers, particularly in the United States and Europe.

Despite their exposure to ailing US and European markets, India's software firms have been upbeat on the industry's outlook. The flagship sector is expected to post 16 to 18 percent annual export revenue growth.

Explore further: Ticketfly buying WillCall for on-premise data

add to favorites email to friend print save as pdf

Related Stories

India's Satyam posts unexpected quarterly loss

May 23, 2011

India's fraud-hit software outsourcer Mahindra Satyam on Monday swung to an unexpected quarterly loss from a profit the previous quarter, hit by the cost of a one-off US lawsuit.

India court bails Satyam fraud accused

Nov 04, 2011

India's Supreme Court on Friday granted bail to the former chairman of Indian outsourcing giant Satyam, B. Ramalinga Raju, who is accused of one of the country's biggest corporate frauds.

India's fraud-hit Satyam posts loss but is on the mend

Sep 29, 2010

India's fraud-hit Satyam announced Wednesday a loss of 27.6 million dollars for the last fiscal year as it reported its first earnings since an accounting scandal pushed the firm to the edge of bankruptcy.

India's Wipro positive despite global uncertainty

Oct 31, 2011

Indian IT outsourcing giant Wipro on Monday projected a positive outlook for the industry, despite gathering clouds over the global economy, as it announced a rise in quarterly profits.

Recommended for you

Ticketfly buying WillCall for on-premise data

15 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0