New Delhi: The week kicked off with a landmark deal as the scam tainted Satyam got a new lease of life. More than three months after the accounting scam first came to light, Tech Mahindra won the bid for Satyam at Rs58 a share, beating L&T, Spice Group and Wilbur Ross. The Company Law Board has approved the takeover, which has propelled Tech Mahindra into the number four position in the Indian IT sector.
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And not some not so good news for the IT sector. Although Infosys Technologies reported a stronger than expected 29% rise in its profits for the fourth quarter, it cut its forecast for 2009-10.
India’s second-largest software services exporter forecast revenues would fall 3.1-6.7% to between $4.35 billion and $4.52 billion, after rising 11.7% last year. Infosys’ revenues have grown by more than 30% over the past few years. 64% of the company’s business comes from developing applications, designing supply chains and providing back-office services to US companies. Infosys’s net profit rose to Rs1,613 crore or $323 million in January-March from Rs12.49 billion a year ago.
Moving on to politics, the first phase of the voting for the general election on Thursday was marked by Naxal violence across three states. 17 people were killed in Bihar, Jharkhand, Chhattisgarh and Orissa. Polling booths and vehicles carrying elections officials were captured and torched in various districts across Chhattisgarh. The BJP lashed out at the government saying enough security was not provided, but the Congress was defensive.
The overall voter turn out was on average 60%. The Naxal affected states did modestly well, with more than 50% polling. The highest turnout was in Lakshwadeep, while UP and Bihar, the states that together hold 120 seats in the Lok Sabha, performed relatively poorly with UP at 48-50% and Bihar, the lowest at 46%.
In a reprieve for Varun Gandhi, the Supreme Court ordered his release on parole for two weeks on condition that he would give a fresh undertaking that he would not make any more hate speeches. The Congress interpreted this as a admission of his guilt.