1. Tech Mahindra Q3 net profit declines 5.7% to Rs 759.24 crore

Tech Mahindra Q3 net profit declines 5.7% to Rs 759.24 crore

IT services firm Tech Mahindra today reported 5.7 per cent decline in consolidated net profit at Rs 759.24 crore for the quarter ended December 31.

By: | New Delhi | Published: February 1, 2016 7:48 PM
tech mahindra

Tech Mahindra Q3 results: Consolidated revenue stood at Rs 6,701.14 crore in the quarter under review, up 16.5 per cent, from Rs 5,751.70 crore in the year-ago period.(Express Photo)

IT services firm Tech Mahindra today reported 5.7 per cent decline in consolidated net profit at Rs 759.24 crore for the quarter ended December 31.

The firm had registered a net profit of Rs 776.77 crore in the corresponding quarter of the last fiscal, Tech Mahindra said in a statement.

However, its consolidated revenue stood at Rs 6,701.14 crore in the quarter under review, up 16.5 per cent, from Rs 5,751.70 crore in the year-ago period.

“We continue to drive growth in a seasonally weak quarter through offerings that are echoing well with the market, which holds potential to deliver long term opportunities.

“We are enabling digital transformations for customers in the areas of IoT, Automation, Machine Learning and Artificial Intelligence,” said C P Gurnani, Managing Director and CEO, Tech Mahindra.

The challenge facing the industry now is to understand the full potential of digital technology and help customers make the best of it at the earliest and Tech Mahindra believes it is well-positioned to serve those interests, he added.

The company’s revenues from IT business stood at Rs 6,172.24 crore, while that from BPO segment was at Rs 528.9 crore in the quarter under review.

On a sequential basis, net profit was down 3.7 per cent at $115 million in the quarter under review, while revenue grew 0.4 per cent to $ 1.01 billion.

Tech Mahindra Vice Chairman Vineet Nayyar said: “We are on track towards gradual recovery resonated by our margin improvement over the last two quarters. We continue to focus on strengthening our core and leveraging it to build further traction in our business.”

The company added 1,902 professionals during the quarter, taking the total headcount to 107,137. The software headcount stood at 71,892, while the number of BPO employees was 28,279.

At the end of December 31, 2015, Tech Mahindra had Rs 4,940 crore in cash and cash equivalents.

Its active client count stood at 801 in the third quarter of the ongoing fiscal.

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