Tech Mahindra Q3 net profit dips to Rs 275 cr

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SummaryAn one-time settlement made by Mahindra Satyam affected Tech Mahindra.

India's sixth largest software exporter Tech Mahindra today said its consolidated net profit dipped marginally to Rs 275.77 crore for the third quarter ended December 31, 2012 due to a one-time settlement made by Mahindra Satyam.

This is against a net profit of Rs 276.03 crore in the same period last year, Tech Mahindra said in a statement.

During the quarter, Mahindra Satyam paid Rs 294 crore towards settlement of legal claims of Aberdeen.

Mahindra took over reins of the scam-tainted Satyam Computers in April 2009 and rebranded it as Mahindra Satyam.

The consolidated numbers includes financials of Tech Mahindra, Satyam Computer Services, Venturbay Consultants, C&S System Technologies, Mahindra Logisoft Business Solutions and CanvasM Technologies.

Tech Mahindra's consolidated revenues in the reported quarter increased by about 24 per cent to Rs 1,791.10 crore from Rs 1,444.87 crore in the year-ago period.

Revenues from Telecom Service Provider segment stood at Rs 1,267.88 crore, while that from Telecom Equipment Manufacturer and BPO verticals stood at Rs 108.94 crore and Rs 350.52 crore, respectively.

Vineet Nayyar, Executive Vice Chairman, Tech Mahindra said: "Our growth trajectory continues. Tech Mahindra has been consistently performing with key wins and partnerships, supplemented by non organic initiatives. As we look forward we continue to see opportunities to help our customers in their strategic objectives, through innovative solutions."

On standalone basis, the company's net profit jumped by 73.7 per cent to Rs 189.09 crore, while reveneues grew by eight per cent to Rs 1,502.52 crore in the October-December 2012 quarter.

Tech Mahindra added 14 new logos in the said quarter and the total headcount stood at 49,059 people.

The cash and cash equivalent stood at Rs 482 crore.

Addressing reporters in Mumbai, Tech Mahindra Managing Director C P Gurnani said but for the revenues from two acquisitions during the quarter (Hutchison Global Services and Comviva), the total numbers would have been flat. While Hutchison contributed USD 37.6 million during the quarter, Comviva chipped in with USD 6 million, he said.

The company's revenue from its biggest client BT had declined by 5 per cent during the quarter.

Gurnani said, the company sees its revenue flow from BT coming down further. However, he said, still this is the single-largest revenue earner for the company, accounting for 29 per cent of the total revenue flow in the December quarter.

The pricing environment remains stable as revenues from telecom service provider segment stood at Rs 1,267.88 crore, while that from telecom equipment manufacturer

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