Mahindra Satyam hits 52-week high on strong results

Shares of Mahindra Satyam rose more than 8 percent and hit a 52-week high after the company reported a better-than-expected 56 percent increase in net profit during April-June.

Profits for the first quarter ended June 30 rose to Rs 352 crore compared with Rs 225 crore in the year-ago period and an analysts’ estimate of Rs 270 crore, Reuters report said.

An IDFC Securities post earnings report said the company’s key positives were healthy margins, client addition and hiring metrics.

[caption id=“attachment_403220” align=“alignleft” width=“380”]  The company reported a revenue growth of 3 percent on quarter with organic growth at 2.4 percent.Reuters[/caption]

“Healthy operating performance in Q1FY13 (especially on EBIT margins) marks another quarter of strong execution from Mahindra Satyam despite challenging environment,” said the note.

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The company reported a revenue growth of 3 percent on quarter with organic growth at 2.4 percent. The rest came from acquisition of vCustomer, it said.

Standalone revenues grew 2.3 percent sequentially driven by volume growth of 3 percent. Net hiring was 2,640 employees.

The company’s EBITDA margin increased by 420 basis points on quarter to 21.7 percent. The weak rupee contributed 300 basis points and operational efficiency 85 basis points. The US visa costs shaved 30 basis points off the margins, the brokerage said.