India's Mahindra Satyam posts strong profit growth

Feb 01, 2012

India's software outsourcer Mahindra Satyam on Wednesday posted a near five-fold jump in its third quarter net profit, beating market forecasts, as margins were boosted by a fall in the rupee.

The company, recovering from India's largest corporate , said its soared to 3.08 billion rupees ($61 million) in the three months ended December, compared to 589 million rupees a year earlier.

Revenue at the company, based in the southern city of Hyderabad, rose 34 percent to 17.18 billion rupees, from a level earlier.

Analysts expected Satyam to show a 2.1 billion rupee profit.

Mahindra Satyam, formerly known as Satyam Computer Systems, showed foreign exchange gains of 664 million rupees, up from 134 million rupees a year earlier.

Satyam stunned corporate India in 2009 when its founder B. Ramalinga Raju admitted he had for years overstated profits and inflated the balance sheet by more than $1 billion.

The scandal nearly pushed Satyam into bankruptcy but its new owner Tech Mahindra, part of Indian auto and farm equipment manufacturer Mahindra and Mahindra, has managed to turn around the firm after the revelations.

Raju, once a star of India's software boom, is now on bail awaiting trial for conspiracy, cheating and forgery.

"We continue with our path of building the organisation and improving operations, in the face of some headwinds on the economic front," said Mahindra Satyam chairman Vineet Nayyar, in a company statement.

added a net 188 employees in the quarter, with a total staff of 32,280 as of December 31.

Explore further: Blackberry posts 3Q adjusted profit, revenue down

add to favorites email to friend print save as pdf

Related Stories

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.

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'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 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.

Recommended for you

Atos shares soar after Xerox acquisition

2 hours ago

Shares in French tech firm Atos soared nearly five percent on Friday as traders cheered the news it had bought the IT wing of Xerox for more than $1 billion.

Two more former Sony workers sue over data breach

18 hours ago

Two more former employees of Sony Pictures Entertainment are suing the company over the massive data breach in which their personal and financial information was stolen and posted online.

Constantly changing online prices stump shoppers

19 hours ago

Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to "buy low."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.