Mahindra Satyam - Q3FY12 Result Update - Emkay

Reco: HOLD
CMP: Rs 76
Target Price: Rs 80

Currency and other income drive profit beat

- MSat reported another qtr of beat on op profits & net profits aided by weak currency ,other income, however composition of the numbers continues to disappoint us

- Rev at US$ 325 mn (-1.5% QoQ, flat in c.c terms) missed est and was weaker than peers. HC addition was somber for the 2nd qtr in a row with co adding <200 people during the qtr

- Rev from US were down sharply by ~6% QoQ. Clients metrics performance mixed with good growth in top 10/20 clients, however no of US$ 10 mn+ clients declined QoQ by 5 to 30

- While we cut our rev est (16/13% US$ YoY growth V/s 19/16% earlier), lower currency resets, Q3 beat drive 16/6%raise in FY12/13E EPS to Rs 8.5/8. HOLD, TP unchanged at Rs 80.

Source : Equity Bulls

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