Mahindra Satyam surges 5% on Q3 results

NEW DELHI: Shares of Mahindra Satyam Ltd surged over 5% in early trade on Thursday after the IT firm reported a stronger-than-expected five-fold jump in quarterly net profit to Rs308 cr, helped by a fall in the value of the rupee.

The company's consolidated revenue stood at Rs 1,718 crore in the third quarter, 34 per cent higher year-on-year. "We continue on our path of building the organisation and improving our operating matrix in the face of some headwinds on the economic front," Mahindra Satyam Chairman Vineet Nayyar said in a statement.

The total headcount of the company stood at 32,280 as of December 31, a net addition of 188 employees quarter-on-quarter. The attrition rate at the company was 16 per cent in Q3, down from 25 per cent in the corresponding period last year.

Analysts, on average, had expected a net profit of Rs 2.2 billion. Mahindra Satyam booked foreign exchange gains of Rs 664 million, up from Rs 134 million in the year-earlier period.

At 09:38 a.m., shares of the company were trading 3% higher at Rs 78.50. The stock has hit a high of Rs 79.90 and a low of Rs 77.85. The stock has surged over 20% so far in 2012.