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The company’s revenue stood at Rs 4,898.5 crore, against Rs 3,668 crore for the year-ago period, a rise of 33.5%.
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 has 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 profit after tax was at $163 million, up 175.7% year on year and 43.5% compared to the previous quarter. The revenue stood at $791 million, with an increase of 17.2% year on year and 4.4% quarter on quarter.
Vineet Nayyar, executive vice chairman, Tech Mahindra said that they are seeing green shots in gobal economy. “Ultimately our performance is linked with the performance of the global economy. And there we are seeing not only green shoots,” he said.
Nayyar said that US continue to grow strongly and the demand is also growing while Europe has passed through its worst stage and is moving on an upward trajectory though its growth levels are still not the same as they used to be. "Another positive sign is that Europe wants to become competent and is looking for cost effective solutions, which makes companies like Tech Mahindra relevant," he said.
The company is doing well in Asia, especially Australia and New Zealand. It is also making headways in Middle East and it is looking at growth in Africa, where there is good potential.
The company has added 2,165 people during the quarter taking the total headcount for the year stood at 87,399. Its debt as of December 31, 2013 was at Rs 342 crore and cash and cash equivalent was at Rs 3459 crore. Total number of active client stood at 605 during the third quarter as compared to 576 in the second quarter.
Telecom, Manufacturing and BFSI verticals continue to be the growth avenues for the company during the quarter, said C P Gurnani, managing director and CEO of Tech Mahindra. On sequential basis, active clients increased to 605 from 576.
The merger of Mahindra Engineering Services with Tech Mahindra is expected to complete in the next couple of quarters. This merger, subject to regulatory approvals, will see the creation of one of the prominent players in the engineering service space from India with strengths in Aerospace and Automotive verticals. MES boasts of over 1300 employees and revenue of RS 250.59 crore as of fiscal 2013.
