TechM net drops 39% on Satyam debt burden

Tech Mahindra, the new owner of Mahindra Satyam (formerly known as Satyam Computer Services),

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may publish the restated figures of Satyam by December-end or early January, according to CP Gurnani, chief executive officer of Mahindra Satyam.

Meanwhile, Tech Mahindra saw a 39.2 per cent drop in PAT due to interest costs on borrowings to fund Sat-yam acquisition. The company’s profit after tax stood at Rs 140.1 crores for the April-June quarter of 2009, against Rs 230.4 crores in the January-March quarter of 2009. The company’s revenue for the reporting quarter stood at Rs 1,130 crores. “The Tech Mahindra numbers are below our expectations,” said Ajay Parmar, research head Emkay Global Financial Services.

“The decline in profit after tax is primarily due to interest costs and if you compare it to the same quarter last year, it had other income which is not there in this quarter,” said Sanjoy Anand, CFO of Tech Mahindra.

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