BANGALORE Feb 6 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
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
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.