Mumbai: Software-services provider Tech Mahindra’s first-quarter net profit rose 22% to beat analyst expectations, helped by strong performance by its Mahindra Satyam unit and a currency boost.
Profit for the three months ended 30 June rose to Rs 338 crore ($61.14 million) from Rs 277 crore a year earlier. Analysts on average had expected a net profit of Rs 309 crore, according to a Reuters poll of five brokerages.Billionaire Anand Mahindra purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of the country’s largest accounting frauds.
Shares of Tech Mahindra and Satyam have each gained close to a third this year, ahead of their merger subject to regulatory approval, which will make the combined company India’s fifth-largest software services provider by revenue.
The companies are part of the country’s $100 billion a year IT and BPO industry that derives three-quarters of its revenue from the United States and Europe.
