Mahindra Satyam gains over 2% post Q4 earnings

NEW DELHI: Mahindra Satyam Ltd surged over 2 percent on Friday after the company reported a net profit of Rs 534.21 crore for the fourth quarter ended March 31, 2012. Income from operations during the quarter stood at Rs 1,666 crore compared to Rs 1,375 crore for the same period last fiscal.

It had posted a net loss of Rs 327 crore in the January-March period of 2011.

However, the company reported a 3 percent decline in revenue for the March quarter and added to the near-term worries of the software industry by flagging troubles in the United States and Europe.

The company’s topline decreased QoQ by 3 percent to Rs 1,665.8 crore while its bottomline expanded 73.2 percent sequentially to Rs 534.2 crore in Q4 FY2012.

“The bottomline included an exceptional gain of Rs 109.4 crore and a tax reversal of Rs 94.3 crore. Barring these factors as well, Satyam was able to report an incremental net income during the quarter,” Nitin Prakash Daga, AVP - Research, Microsec capital Ltd, said.

“Led by the strong numbers during the quarter, the stock may witness buying interest in the near term,” Daga added.

At 10:14 a.m., the company’s shares were trading 2.4 percent higher at Rs 68.45. The stock has hit a high of Rs 72 and a low of Rs 67.85 in trade today.