BANGALORE Jan 31 India's Satyam Computer
Services Ltd handily beat expectations with a 20.6
percent rise in third-quarter profit before a one-off loss,
joining larger rivals like Infosys in signalling a
pickup in outsourcing spend.
The company, now called Mahindra Satyam, is in the last lap
of a merger with parent Tech Mahindra Ltd. Profits for
the December quarter rose to 3.74 billion rupees ($70.3 million)
from 3.10 billion rupees a year earlier, the company said on
Thursday. That compares with analysts' estimate of 2.81 billion
rupees, according to Thomson Reuters I/B/E/S.
Profit after the one-off loss of 2.94 bln rupees was 800
million rupees, Satyam said.
Satyam paid $68 million to Aberdeen Global and 22 funds to
fully settle claims related to an accounting fraud that led to
the sale of the Hyderabad-based company to Tech Mahindra, the
company had said on Dec. 13.
Satyam was sold in a government-backed auction in 2009 after
its founder and former chairman admitted to one of the country's
biggest accounting frauds.
A surprise increase by second-ranked Infosys in
revenue forecast for the current fiscal year and strong earnings
at top-ranked Tata Consultancy Services earlier this
month prompted speculation of a pickup in outsourcing spending
in the sector's biggest market, the United States.
Such a pickup would help Satyam's parent Tech Mahindra
accelerate its growth towards its aim of doubling consolidated
revenue to about $5 billion in 2015. The combined company would
be India's fifth-largest software services provider, with
customers such as BT Group PLC and SAAB AB.
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 merger may be complete by March, the
company had said.