Satyam rises from the depths hitting upper cirucit thrice in consecutive sessions

11 June 2009

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.