Mahindra Satyam has soared 6% to Rs 76.20 on back of huge volumes on the bourses. A combined 4.5 million shares have already changed hands on the counter till noon deals, against an average sub 5 million shares that were traded daily in past two weeks on the NSE and BSE.
The stock is outperforming the market by rising 14% compared to less than 1% gain in the benchmark index, after the company has reported better-than-expected financial results for the quarter ended March 2012.
The company’s profit after tax stood tall at Rs 534 crore, up 73.2% quarter-on-quarter (qoq), aided by one-time gain of Rs 109 crore and deferred tax asset of Rs 162 crore.
The company is back on its growth track after two years of metamorphosis undertaken by Tech Mahindra’s management post its acquisition in June 2009.
According to analyst at Angel Broking, “On the operating front, Satyam scaled up its margins from 8.8% in FY2011 to 16.0% in FY2012 on the back of factors such as rupee depreciation and rationalization of employee pyramid”.
