Tech Mahindra net profit up three-fold

Posts Rs 1,010 cr profit, revenue up by 33.5% to Rs 4,898.5 cr

Tech Mahindra’s net profit for the quarter ended December 2013 rose over three-fold to Rs 1,010 crore, compared with Rs 321.5 crore in the corresponding period last year, on account of exceptional gains. Excluding these gains, the net profit stood at Rs 663 crore.

Revenue stood at Rs 4,898.5 crore, against Rs 3,668 crore for the year-ago period, a rise of 33.5 per cent.

During the quarter, there was an exceptional item (income) of Rs 120 crore as write-back of the estimated excess provision for contingencies provided earlier by Satyam, based on a reevaluation by the management, the company said. It had a tax writeback of Rs 226.6 crore during the quarter. After re-evaluating the effects of the possible outcomes of the tax matters in dispute relating to erstwhile Satyam, the company has written back the excess tax provision in respect of prior years.

In terms of US dollar, the consolidated net profit was at $163 million, up 175.7% year on year and 43.5% compared to the previous quarter. Revenue stood at $791 million, up 17.2% year on year and 4.4% quarter on quarter.

The merger of Mahindra Engineering Services with Tech Mahindra is expected to complete in the next couple of quarters.