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Backed by strong growth in the US and better client mining, India’s fifth-largest IT services company Tech Mahindra on Wednesday reported numbers that are in line with market expectations.
The Mumbai-based company reported a net profit of Rs 720 crore for the quarter ended September, almost flat compared to the year-ago quarter, owing to increase in total expenses.
However, the revenues for the quarter under review were ahead of expectations at Rs 5,487 crore, up 13 per cent from same period last year, largely led by growth in the telecommunications and manufacturing segments. The reported bottom line was lower than Bloomberg estimates of Rs 726 crore, while revenues were higher than estimated Rs 5,377 crore.
The IT services provider also saw its other income rise 13 per cent to Rs 57 crore on a year-on-year basis. The firm reported a total expenditure of Rs 4,533 crore in the period under review against Rs 3,782 crore in the year-ago period. Besides, the net profit during the period was impacted by forex loss of Rs 45.8 crore during the period.
“The growth seen in the business has largely come from the existing clients and not the 17 new clients added as billing is yet to begin there,” said C P Gurnani, managing director and CEO of Tech Mahindra. The company added 17 clients on net basis during the quarter, which took its total number of active clients to 649 at the end of the September quarter.
