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Tech Mahindra in the black, upbeat on Satyam buy

Tech Mahindra in the black, upbeat on Satyam buy
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First Published: Tue, Apr 28 2009. 12 54 AM IST
Updated: Tue, Apr 28 2009. 12 54 AM IST
Bangalore: Tech Mahindra Ltd, which is now a top-tier Indian outsourcing firm with its deal to take over Satyam Computer Services Ltd, on Monday posted a March quarter profit from a loss a year earlier.
The firm, a unit of auto maker Mahindra and Mahindra Ltd, said a focus on efficiency and costs offset a weaker currency and global economic slowdown.
“The environment remains challenging,” Sonjoy Anand, chief financial officer of Tech Mahindra said by phone. “I would have to say that the environment on the pricing front is on the negative side.”
Tech Mahindra received nearly 60% of its revenue from Europe in January-March, and said a fall in the British pound against the rupee over the year had dented earnings.
Earlier this month, it won an auction for a controlling stake in Satyam, with a bid that could top $580 million (Rs2,900 crore today) depending on the outcome of an open offer. Brokerage India Infoline Ltd has said while Satyam would enhance Tech Mahindra’s offerings, it would bring in “unquantifiable risks” due to legal liabilities.
Tech Mahindra said net profit in the quarter was Rs230 crore against a loss of Rs221 crore a year earlier, which it said was due to accounting of a one-time expense of Rs440 crore. Revenue rose 3% to Rs1,051 crore in the quarter.
Ahead of the results, shares of Tech Mahindra, which counts BT Group Plc. and US telecom carrier AT&T Inc. among its clients, ended down 3.4% at Rs328.35 in a Mumbai market that rose 0.4%.
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First Published: Tue, Apr 28 2009. 12 54 AM IST