Mahindra Satyam Q3 net profit seen up at Rs 61 cr

Mahindra & Mahindra group company Mahindra Satyam is set to report a net profit before exceptional items at Rs 61.24 crore for the quarter ended December 2010 as against Rs 31.7 crore in previous quarter.

Revenues are seen going up to USD 278 million versus USD 272 million and in rupee terms, revenues are likely to go up to Rs 1,257 crore from Rs 1,242.4 crore (QoQ).

Earning before interest, depreciation, tax and amortisation (EBIDTA) is expected to go up to Rs 88 crore from Rs 73.5 crore (QoQ).

Q3FY11 Expectations
* Expect 2.2% sequential growth in revenues
* Expect volume growth of 2% & flat blended realisation
* Expect 110 bps QoQ expansion in EBITDA margin on a/c of absorption of wage increments during Q2FY11
* Profits before exceptional items expected to show substantial QoQ growth due to higher margins and lower taxes(Q2 FY11 saw effective tax rate of 53% which includes some one time tax payments and is est to come down to 20%)
* Street estimates for profit range from Rs 52 cr to Rs 85 cr
* Expect investor focus on (1) revenue traction (2) margin trajectory (3) plans to relist ADR and (4) commentary on potential merger with Tech M.