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Tech Mahindra net profit up 120% on value-added services

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BS Reporter Mumbai
Last Updated : Feb 05 2013 | 1:05 AM IST
A move towards value-added services such as managed platforms and consulting besides expansion into areas such as business process outsourcing (BPO) and remote infrastructure management helped Mumbai-based telecom solutions provider, Tech Mahindra, to shore up its consolidated net profit (excluding exceptional items) for the fourth quarter ended March 31, 2007 by 120 per cent to touch Rs 196.1 crore compared with Rs 89.1 crore in the corresponding quarter of the previous financial year.
 
The company's revenues increased by 108 per cent and clocked Rs 874.5 crore compared with Rs 421.2 crore in the fourth quarter of the previous year. Compared with the previous quarter (q-o-q), the company incurred a one-time exceptional charge towards an upfront payment of Rs 524.9 crore to a customer and has reported a net loss of Rs 328.9 crore.
 
Its revenues grew 13.6 per cent q-o-q from Rs 769.8 crore for the quarter-ended December 31, 2006. For the full year, the company's consolidated net profit, excluding exceptional and prior period items, at Rs 612.6 crore, registered an increase of 160 per cent over the last financial year. Its consolidated revenues grew by 136 per cent and stood at Rs 2,929 crore.
 
The headcount of the company was up by 88 per cent and totalled 19,749. The utilisation percentage including trainees was at 67 per cent.
 
Anand Mahindra, chairman, Tech Mahindra, said: "Tech Mahindra has had another outstanding year of growth. This has been achieved through a single-minded focus on meeting customer requirements."
 
At the end of the fourth quarter ending March 31, 2007, the company derived 18 per cent, 73 per cent and 9 cent of its revenues from the US, Europe and rest of the world respectively and the number of clients increased to 83 in FY07 from 62 in FY06. Tech Mahindra's top client contributed 67 per cent to its revenues. Its top five clients contributed 83 per cent whereas the top 10 generated 89 per cent to revenues.
 
In the last financial year, Tech Mahindra entered into a joint venture with Motorola, known as CanvasM, to deliver targeted solutions as value-added services, acquired iPolicy Networks (a network security company) and signed a 5-year, $1 billion deal with the BT group.

 
 

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First Published: May 08 2007 | 12:00 AM IST

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