Software firm Tech Mahindra today reported a 59.3% decline in consolidated net profit at Rs 92.19 crore for the quarter ended March 31, 2011, mainly on account of losses related to Satyam Computer.
The net profit stood at Rs 227.02 crore in the fourth quarter of 2009-10.
However, revenue from services for the last quarter of 2010-11 grew 6.6% at Rs 1,261.5 crore compared to Rs 1,183.3 crore in FY10.
"This negative in the net profit is mainly due to the one-time settlement of the US class action suit at a cost of $125 million, which we consider as a positive," Tech Mahindra Vice-Chairman, Managing Director and CEO Vineet Nayyar told reporters here.
Mahindra Satyam, which was earlier called Satyam Computer, was bought by Tech Mahindra after it was hit by the multi-crore accounting fraud.
Shares of Tech Mahindra closed at Rs 658.60 a piece, down 0.41% from its previous close on the Bombay Stock Exchange.
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The consolidated net profit for the year 2010-11 fell by 8.03% to Rs 644.1 crore, compared to Rs 700.4 crore in FY10.
Revenue from services for FY11 grew 11.12% at Rs 5,140.2 crore as against Rs 4,625.4 crore in the previous fiscal.
"Our recent wins lend credence to our belief that we are well-positioned to meet the changing market needs. We are hopeful of being able to continue this momentum into the next year," Nayyar said.
During the year, Tech Mahindra added 15 new clients, taking the total active client base to 128, he added.
Tech Mahindra added 4,809 personnel during the year, taking the total headcount to 38,333, of which software professionals were 26,282, BPO 11,011 and support staff 1,040.
Debt was at Rs 1222.7 crore, while cash and cash equivalents stood at Rs 304.7 crore as of March 31, 2011.
The company's board recommended a dividend of Rs 4 per share for FY11.
During the year, Tech Mahindra continued with geographic diversification by launching BPO operations in Philippines through a large multi-million-dollar deal with a leading full service telecom firm in that country.
The company also inaugurated a state-of-the-art development centre in Germany.
It is also progressing on its engagement with Airtel Africa and the company has already commenced BPO operations in five countries, while remaining two are expected to go live this quarter.
"We see good business traction in Africa. We already have 2,000 personnel in the continent and expect our share of business to grow from there," he said.
The company's PAT at the operating level for the quarter ended March 31 went up marginally by 0.5% at Rs 206.5 crore against the same quarter in the previous fiscal.
Similarly, the revenue of the company grew by 4.2% for the quarter ended March 31 to Rs 1,261.5 crore as compared to the same quarter last year.
Talking about the company's relationship with British Telecom, Nayyar said, "BT is our most important client and we give highest priority to them. However, BT has contained their IT expenditure. Going forward, our increments will come from other areas like our foray into Africa and non-BT business, among others."