Satyam Computer Shares Fall After Reporting Unexpected Fourth-Quarter Loss
Satyam Computer Services Ltd. (SCS) 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.
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