Mahindra Satyam Q2 PAT seen down 24% to Rs 267 cr
Software services provider Mahindra Satyam's profit after tax is expected to go down by 24 percent sequentially to Rs 267 crore in the quarter ended September 2012 owing to foreign exchange loss. Analysts on an average expect forex loss of USD 3-4 million for the quarter.
October 29, 2012 / 19:00 IST
Software services provider Mahindra Satyam's profit after tax is expected to go down by 24 percent sequentially to Rs 267 crore in the quarter ended September 2012 owing to foreign exchange loss. Analysts on an average expect forex loss of USD 3-4 million for the quarter.
Dollar revenues are seen going up by 2.6 percent quarter-on-quarter to USD 351 million and rupee revenues seen up by 1.7 percent QoQ to Rs 1,912 crore during the same period.Analysts feel the dollar revenues will get support of vCustomer, which was acquired by the company in June quarter for USD 27 million.Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to fall by 6.86 percent to Rs 380 crore in the second quarter of FY12 from Rs 408 crore in the previous quarter. EBITDA margin is expected to decline 173 basis points QoQ to Rs 19.87 percent for the quarter due to wage hikes and SG&A. But its internal margin thresholds on new deal wins have increased over the past two quarters.Mahindra Satyam has seen good client addition, which added one large client in USD 50 million plus in last quarter. Attrition was at 13.5 percent - the lowest in 3 years; traction in the US has been changing over the past two quarters as the company is increasingly being invited to deals in the US.The stock, which rallied 65 percent in 2012, rose 2.39 percent to close at Rs 107.10 on Monday ahead of results tomorrow. In general, the company has been improving its financials. Dollar revenues rose 4.6 percent in Q1 after a 16 percent growth in FY12. The margin had been expanded for the seventh consecutive quarter in Q1FY13. It has won more than 125 new clients over the past 18 months.Post strong numbers in Q1, the stock surged 27 percent from Rs 84 to Rs 110. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
