Mahindra Satyam Q1 FY2013 Results - First Cut - Microsec Research

Mahindra Satyam (Satyam) announced its Q1 FY2013 results on 02 August 2012. Both the company's top line and bottom line came above the consensus estimates. Although on reported basis, Satyam registered a sequential decline in Net Income due to reversals of one-time provisions and impairment losses, during Q4 FY2012. Adjusting for the same, coupled with normalized tax treatment, based on current quarter tax rate, the company reported a healthy q-o-q increase in bottom line.

While Satyam's top line increased 12.8% q-o-q to Rs.1,879.9 Crores, its Net Income, on adjusted basis, expanded 44.7% sequentially to Rs.352.3 Crores in Q1 FY2013. In addition, the company reported a notable sequential expansion in the Earnings before Interest, Depreciation, Tax and Amortization (EBIDTA) Margins during the quarter. Its EBIDTA margins improved 418 basis points (bps) q-o-q to 21.7% in Q1 FY2013.

Based on annualized EPS of Q1 FY2013, Satyam currently trades at ~7x of its earnings, which seems attractive. Furthermore, led by its healthy performance during the quarter, the stock may witness northward movement in the near term.

Source : Equity Bulls

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