Tech Mahindra profit up 22%, beats estimates

Profit for the three months ended June 30 rose to Rs 3.38 billion from Rs 2.77 billion a year earlier

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 June 30 rose to Rs 3.38 billion from 2.77 billion rupees a year earlier. Analysts on average had expected a net profit of Rs 3.09 billion, 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 India'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 India's $100-billion-a-year IT and BPO industry that derives three-quarters of its revenue from the United States and Europe.