Tech Mahindra quarterly net profit dips 8 pct to Rs 631 cr; results 'favorably aligned', says Vineet Nayyar

Jul 31 2014, 17:15 IST
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In dollar terms, Tech Mahindra's profits grew 4.3 per cent quarter-on-quarter to USD 105 million. In picture: Anand Mahindra (Reuters) In dollar terms, Tech Mahindra's profits grew 4.3 per cent quarter-on-quarter to USD 105 million. In picture: Anand Mahindra (Reuters)
SummaryTech Mahindra had posted a net profit of Rs 686.3 crore in the same quarter last year.

India's fifth largest IT firm Tech Mahindra today said its net profit has declined 8.1 per cent to Rs 630.7 crore for the quarter (Q4) ended June 30, 2014.

The Mumbai-based firm had posted a net profit of Rs 686.3 crore in the same quarter last year, Tech Mahindra said in a statement.

However, on sequential basis, Tech Mahindra Ltd net profit grew 2.6 per cent from Rs 614.2 crore in the January-March 2014 quarter.

Its consolidated revenues increased 24.8 per cent to Rs 5,121.5 crore for the April-June 2014 quarter from Rs 4,103.2 crore in the year-ago period.

"The growth momentum continues to be powered by strategic investments and capability building. Our agility to perform in rapidly changing economic conditions speaks volumes about the trust shown by our customers in us," Tech Mahidra Executive Vice Chairman Vineet Nayyar said.

The results are aligned favorably towards us becoming a 'partner of choice for developing transformational solutions and making enterprises future ready, he added.

Sequentially, revenues were higher by 1.2 per cent from Rs 5,058.1 crore in the January-March 2014 quarter.

In dollar terms, the company's profits grew 4.3 per cent quarter-on-quarter to USD 105 million, while revenues was up 3.6 per cent sequentially at USD 855 million in the reported quarter.

"Our robust performance during the quarter sets the tone for rest of the year. Tech Mahindra with telecom as a horizontal differentiator augurs well with the customers in this potentially disruptive landscape," Tech Mahindra CEO and Managing Director CP Gurnani said.

Its active client count stood at 632 in Q1 this fiscal as against 629 in Q4 FY2013-14.

Americas accounted for 47 per cent of the company's revenues during the quarter, while Europe contributed 31 per cent and Rest of World 22 per cent.

In terms of verticals, telecom accounted for 50 per cent of the quarter's revenues, manufacturing 18 per cent, technology, media and entertainment 9 per cent, BFSI 10 per cent and retail, transport and logistics six per cent.

The company added 3,288 professionals during the quarter, taking the total headcount to 92,729 people. Of these, software accounted for 64,095, while BPO professionals were 21,936 in number.

Tech Mahindra said it has repaid debt of Rs 277 crore during Q1 and now has Rs 86 crore of debt on its books as of June 30, 2014.

Cash and cash equivalent stood at Rs 3,669 crore as of June 30,

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