Shares in Tech Mahindra fell 1.9 percent, while Satyam Computer Services dropped 1.6 percent, a day after the companies said a long-planned merger between the two had been delayed by an additional six months up to September 30.
The companies did not give a reason for the delay in their exchange filing.
Bangalore: Satyam Computer Services handily beat expectations with a 20.6 percent rise in third-quarter profit before a one-off loss, joining larger rivals like Infosys in signalling a pickup in outsourcing spend.
The company, now called Mahindra Satyam, is in the last lap of a merger with parent Tech Mahindra. Profits for the December quarter rose to Rs 374 crore from Rs 310 crore a year earlier, the company said on Thursday. That compares with analysts' estimate of Rs 281 crore, according to Thomson Reuters I/B/E/S.
By R Jagannathan
On 7 January 2009, when Satyam Computer Services Chairman B Ramalinga Raju wrote to his board and the stock exchanges that he had fiddled with the books and landed the company in a mess, a little-noted part of his confession related to the money he had put into the company to save it.
After acknowledging overstated cash and bank balances, non-existent accrued interest and debtors to the extent of nearly Rs 6,000 crore, he also slipped in a claim of Rs 1,230 crore that the company owed him and his family.
Satyam Computer Services , which is in the process of a merger with parent Tech Mahindra , reported an 56.4 percent rise in quarterly profit, beating expectations after winning orders including a key contract from a metals and finance company.
Profits for the first quarter ended June 30 rose to Rs 352 crore from Rs 225 crore in the year-earlier period, Satyam said in a statement. That compares with analysts' estimate of Rs 27o crore
Billionaire Anand Mahindra had purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of India's largest accounting frauds.
