Hold Mahindra Satyam - Geojit BNP Paribas Financial Services

- 3QFY13 USD revenue was flat qoq and lower than the street estimates.

- EBIT margin was up 40bps on higher BPO margin, lower depreciation and two non-recurring items.

- Excluding the Rs.294 crore Aberdeen UK settlement, EPS beat market estimates on higher translation and hedging gains.

- The muted 3Q revenue was due to holidays and slow decisions in the US (52% of total) and by manufacturing and technology clients (together 53% of revenue).

- But, Satyam is positive on the deal pipeline, improving win ratios and leverage from expanded offerings. The company is also positive on larger opportunities after the impending merger with Tech Mahindra.

Source : Equity Bulls

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