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Satyam Drops in Mumbai Trading on Unexpected Loss in Quarter

Satyam Drops in Mumbai Trading
The headquarters of Satyam Computer Services Ltd. stands in Madhapur, Hyderabad, India. The software exporter dropped 6 percent to 72.30 rupees in Mumbai trading, the biggest intraday decline since Feb. 9. Net loss was 3.27 billion rupees ($72 million) in the three months ending March 31, according to a statement to the Bombay Stock Exchange today. Photographer: Racha Ramesh/Bloomberg

May 23 (Bloomberg) -- Satyam Computer Services Ltd. fell the most in more than three months in Mumbai trading after reporting a fourth-quarter loss today, missing analyst estimates for a profit after settling a class-action lawsuit.

The software exporter dropped 6 percent to 72.30 rupees in Mumbai trading, the biggest intraday decline since Feb. 9. Net loss was 3.27 billion rupees ($72 million) in the three months ending March 31, according to a statement to the Bombay Stock Exchange today. The average of 7 analyst estimates compiled by Bloomberg was for a profit of 927 million rupees.

Satyam, embroiled in India’s biggest corporate fraud probe, in February agreed to pay $125 million to settle a U.S. shareholder lawsuit over alleged securities violations in federal court in New York. The company also reported its third annual loss since former Chairman Ramalinga Raju disclosed in January 2009 that he overstated assets by more than $1 billion.

The company fell 4 percent to 73.85 rupees as of 1:39 p.m. in Mumbai trading.

Raju was charged with faking invoices, falsifying accounts, inflating the company’s tax liability and understating debt in the fraud. India’s top court canceled his bail in October.

Net loss was 1.473 billion rupees in the year ended March 31. Sales dropped 6 percent to 51.45 billion rupees.

To contact the reporter on this story: Ketaki Gokhale in Mumbai at kgokhale@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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