India's Tech Mahindra profit unchanged, misses estimates

BANGALORE Wed Feb 6, 2013 5:48am EST

BANGALORE Feb 6 (Reuters) - Tech Mahindra Ltd, the IT outsourcing business of India's $15.9 billion Mahindra group, posted flat earnings for its third fiscal quarter, falling short of expectations, hurt by a one-off payment at unit Satyam Computer Services.

Profits for the December quarter was 2.76 billion rupees ($52 million) unchanged from the year-earlier period, Tech Mahindra said on Wednesday. That compares with analysts' average estimate of 3 billion rupees, according to Thomson Reuters I/B/E/S.

Tech Mahindra, which is merging Satyam Computer with itself, is in the penultimate stage of the process, Executive Vice Chairman Vineet Nayyar said last week.

Billionaire chairman Anand Mahindra, purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of the country's biggest accounting frauds.

Last week, Satyam, now called Mahindra Satyam, topped estimates excluding a one-time payment to settle claims by Aberdeen global, related to the accounting fraud. This settlement, reached in December, was the last of such agreements, Nayyar told reporters on Jan. 31.

Tech Mahindra owns close to 43 percent of Satyam. It is offering one share in itself for every 8.5 shares of Satyam to absorb the company. The combined company will be India's fifth-largest software services provider, with customers such as BT Group PLC, AT&T and SAAB.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.