Mahindra Satyam gains after Q4 earnings

The Q4 result was announced after market hours on Thursday, 16 May 2013.

Meanwhile, the S&P BSE Sensex was down 1.23 points or 0.01% at 20,246.10.

On BSE, 1.26 lakh shares were traded in the counter as against average daily volume of 4.25 lakh shares in the past two weeks.

The stock hit a high of Rs 110.90 and a low of Rs 110.10 so far during the day.

The sharp surge in Mahindra Satyam's net profit on sequential basis was due to exceptional items. There was a one-time exceptional expense reversal of Rs 134 crore in Q4 March 2013. On the other hand, in Q3 December 2012, the company had incurred exceptional one-time loss of Rs 294.04 crore pertaining to the Aberdeen UK claim settlements. Mahindra Satyam's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 7% to Rs 389.23 crore in Q4 March 2013 over Q3 December 2012. EBITDA margin declined to 20.1% in Q4 March 2013 from 21.6% in Q3 December 2012.

Speaking on the occasion, CP Gurnani, CEO, Mahindra Satyam said, "The large deal win during the quarter is of particular significance and vindicates our investment of time and effort in this area. Our preparedness with Connected Solutions for a Connected World remains positive and we are hopeful of similar wins, which will help us accelerate our growth in the ensuing quarters".

Vineet Nayyar, Chairman, Mahindra Satyam said that the merger of Mahindra Satyam with Tech Mahindra is at its penultimate phase. He added that the merger will embark a new chapter for Mahindra Satyam.

Mahindra Satyam's board of directors at a meeting held on Thursday, 16 May 2013, recommended dividend of 60 paise per share for FY 2013.

Mahindra Satyam is a global business consulting and information technology services company. The company has development and delivery centres in the United States of America, Canada, Brazil, the United Kingdom, Germany, France, Hungary, Egypt, United Arab Emirates, India, China, Malaysia, Singapore, and Australia and serves numerous clients, including many Fortune 500 organizations.

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