Mahindra Satyam surges 15 per cent on bourses

Shares of IT company Mahindra Satyam surged by 15 per cent in early trade on the bourses on Wednesday after the company clocked a Rs 225.2 crore profit for the June quarter.

After a robust opening, the stock spurted by 15.13 per cent to touch an early peak of Rs 81.80 on the NSE. A similar trend was witnessed on the BSE, where the stock shot up by 12.23 per cent to an early high of Rs 79.80.

The surge in the stock market was in line with the bullish trend in the broader market, which has been reeling under heavy selling pressure for the past few days.

The BSE benchmark Sensex index opened nearly 400 points higher, snapping a six-session losing streak, and was later trading at 17,103.62, up 245.71 points.

Buoyed by improved business, Mahindra Satyam swung into the black in the April-June quarter, logging a Rs 225.2 crore profit.

Mahindra Satyam raked in a consolidated profit of Rs 225.2 crore on revenues of Rs 1,433.9 crore in the June quarter. The company had suffered a loss of Rs 327 crore in the previous January-March quarter.

In an unexpected move, Mahindra Satyam (erstwhile Satyam Computer Services) also said it would wind down its American Depository Shares (ADS) programme in 2012, as it was not able to meet US accounting norms.