Mahindra Satyam nosedives 14% to 17-month low on BSE
Mahindra Satyam tanked by nearly 14% to its lowest level in almost 17 months in early trade on the BSE on Tuesday, with investors reacting negatively to the software firm's disappointing Second Quarter results.business Updated: Nov 16, 2010 11:53 IST
Mahindra Satyam tanked by nearly 14% to its lowest level in almost 17 months in early trade on the BSE on Tuesday, with investors reacting negatively to the software firm's disappointing Second Quarter results.
The company, formerly known as Satyam Computer, on Monday reported a consolidated profit of Rs 23.30 crore for the July-September quarter of this fiscal, down from Rs 97.5 crore in the previous quarter as wage hikes squeezed margins.
Reacting to the quarterly results, shares of Mahindra Satyam tumbled by 13.98% to a 17-month low of Rs 72.60 on the Bombay Stock Exchange (BSE).
The last time the scrip was seen near this level was in June 9, 2009, when Mahindra Satyam shares were being quoted at Rs 66.85 apiece.
Similarly, the scrip plunged by 14.18% to an Rs 72.30 on the National Stock Exchange (NSE).
Meanwhile, the BSE's 30-share benchmark Sensex index was down by 271.12 points from its previous close at 20,282.57 in early trade on Tuesday.
In September 2010, the company announced its results for the first time since Satyam Founder Chairman B Ramalinga Raju confessed in January, 2009, to having cooked the IT firm's account books to the tune of crores of rupees for years.
After the lid was blown off the scam, the company was acquired by Tech Mahindra, which rebranded it as Mahindra Satyam. The new promoters had sought time to declare the company's audited results until they could assess the extent of Raju's fraud.