Mahindra Satyam hits 52-week high on strong Q1 earnings

Q1 operating margins improved by almost 700 basis points to 21.7% from 14.8% in previous year quarter

Mahindra Satyam is trading higher by 3% at Rs 85.85 in an otherwise weak market after reporting  better-than-expected 56% year-on-year (yoy) growth in net profit at Rs 352 crore for the quarter ended June 2012, aided by a weak Indian rupee that sharply expanded the software exporter's margin. Analysts on an average had expected net profit of Rs 283 crore for the quarter.

Income from operations grew 31% at Rs 1,880 crore on y-o-y basis. Operating margins improved substantially by almost 700 basis points to 21.7% from 14.8% during the recently concluded quarter.

“Global business realities continue to be unpredictable. However we are confident of taking forward our momentum,” Chairman Vineet Nayyar said in a statement.

 

The stock opened at Rs 85.25 and hit a 52-week high of Rs 86.50 on the NSE. A combined around 80,000 shares have changed hands on the counter in opening deals.