Mahindra Satyam's Q1 net more than doubles to Rs225 crore

IT and software services major Mahindra Satyam on Tuesday reported a consolidated net (after-tax) profit of Rs225.2 crore ($50.2 million) for fiscal first quarter ended 30 June 2011.

The company said quarterly net profit more than doubled on higher client spend and margin expansion to 14.6 per cent from 13 per cent in the similar quarter of the previous year.
Earning per share (EPS) for the quarter was at Rs1.91.

Earnings before interest, taxes, depreciation and appropriations (EBITDA) rose 17.8 per cent quarter over quarter to Rs210 crore. EBDTA in dollar terms was up 18.8 per cent at $46.9 million.

Consolidated revenue for the quarter ended 30 June 2011 stood at Rs1,434 crore, up 4.3 per cent quarter over quarter and up 14.9 per cent year-on-year. In dollar terms, consolidated revenue for the quarter stood at $320 million, up 5.2 per cent quarter over quarter and up 19.3 per cent year-on-year.

Hyderabad-based Mahindra Satyam (formerly Satyam Computer Services), however, warned of challenges arising from the changing global economic climate.

"In the short term, it may lead to budget squeezing, but in the medium term it will be to our advantage," chief executive C P Gurnani said.