Mumbai: Satyam Computer Services posted a consolidated net profit of Rs160 crore ($33.5 million) for the December quarter, lifting its shares almost 10%.
Satyam, which was once ranked as India’s No. 4 outsourcing firm, had not reported results since the revelation of a massive accounting fraud in January, which led to the firm being bought over by Tech Mahindra Ltd.
The firm, at the centre of India’s biggest corporate scandal, said the financial information was prepared using internal management information system and had not been audited, reviewed and examined by an independent auditor.
“There can be no assurance that any such information is accurate and the actual results may be materially higher or lower than projected,” it said in a statement.
The financial information is, however, being disclosed because of an open offer that Tech Mahindra is launching on Friday to buy up to 20% from Satyam’s shareholders, it said.
If fully accepted, it would take Tech Mahindra’s holding in Satyam to 51%.
Satyam reported standalone net profit of Rs181 crore on revenue of Rs2290 crore in the December quarter. The year-ago numbers were not available.
It posted a profit of Rs4 crore on revenue of Rs681 crore in January and net profit of Rs52 crore in February on revenue of Rs676 crore, the outsourcing firm said.
New York-listed Satyam said it had total bank balances of Rs373 crore as at 31 March.
Shares in Satyam rose nearly 10% to Rs66.85, while Tech Mahindra jumped as much as 16.7 % to Rs692.35 after the announcement.
“People were thinking that there’s going to be significant amount of losses. But, that’s not the case,” said Tarun Sisodia, head of research at Anand Rathi Securities.
Satyam’s founder and former chairman Ramalinga Raju shocked investors in January by saying profits had been overstated for years, putting in doubt the survival of the company.
The Indian government quickly stepped in and sacked the board to limit damage to the once-shining sector.
Tech Mahindra, a unit of tractor and utility vehicle maker Mahindra & Mahindra and 31% -owned by Britain’s BT Group, in April won an auction for a controlling stake in Satyam.
As on 26 March, Satyam said outsourcing agreements with 23 of its clients, who contributed $70 million in the quarter ended 31 December revenue, were either terminated or it was not renewed after expiry since the revelation of the fraud.
The company received new business orders from 215 clients, mostly existing, since January till 26 March. The total value of such contracts was $380 million, Satyam said.