With Satyam coming out with better results than had been expected, the company's shares hit the upper limit for the third consecutive straight session today on the Bombay Stock Exchange

The company's shares hit the upper circuit at Rs80.85 on the BSE rising 10 per cent over the previous close while Satyam's new owner Tech Mahindra rose 3.45 per cent at Rs812 on the BSE. The shares later traded at Rs787.10, up 0.26 per cent.

On the NSE, Tech Mahindra surged 4.58 per cent to scale a high to Rs818.70. Satyam reported a net profit of Rs160.50 crore for the October-December 2008 quarter that saw the company fall sharply from grace on a total income of Rs2,327.21 crore.

Satyam had plumbed the lower depths in January with a measly profit of Rs4 crore before recovering with a recorded Rs52 crore profit in February even as it lost about two dozen clients.

The company's board will meet on Thursday to firm up a cost-cutting plan that is expected to cover the issue of employee rationalisation.

The audit-committee comprising government nominees on the Satyam board will also take stock of the progress on the restatement of accounts of the firm according to a source in the know. Meanwhile Deloitte and KMPG are engaged in restating Satyam's accounts.

Satyam with 41,622 employees has around 10,000 excess employees according to its new owner and the rationalisation exercise my hit employees who have not been billed for over six months now. They may be offered 40 per cent of their existing salary for six months, but may have to leave the firm.

Though no layoff plans figure on the board's agenda, according to sources it may be likely discussed part of cost-cutting measures. Revenues at the company have been strained following customers snapping ties after the firm's founder B Ramalinga Raju admitted to fudging the books.

The government has meanwhile said it had completed its job in handling the crisis-ridden Satyam and the company board could decide on sending he nominee directors back.

The company's stock has received a massive thumbs up from investors with the firm reporting revenues of over Rs2000 crore and a surprise profit of Rs181 crore for he December 2008 quarter to boot. Meanwhile, shareholders, in an open offer will be able to tender their Satyam starting Friday.

According to the stipulations of bidding if Tech Mahindra fails to get the requisite 20 per cent from the open offer, then it will make a preferential allotment to take its total holding in Satyam to 51 per cent.