Tech Mahindra reported net profit of Rs 276 crore for the quarter ended December 31, up 7.3 per cent on a year-on-year basis. On a sequential basis, the firms net profit was up 14.8 per cent, backed by gains from its associate firm Mahindra Satyam.
Revenue rose to Rs 1,445 crore, up 19.3 per cent, compared to Rs 1,211 crore in the same period last year. The increase in the topline was despite a drop of revenue from its largest client BT. Revenue from BT, sequentially, was down four per cent. Non-BT business grew by 12 per cent on a sequentially basis.
“We have had a satisfactory quarter, with growth in both revenue and margins. This is a result of our investments in growth markets, and in emerging technologies. We continue to focus on delivering enhanced value to our customers in an uncertain economic environment," said Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra.
The company reported that its revenue from US grew two per cent and Europe saw a significant fall of 6.7 per cent. Nayyar also said that going ahead they see IT budgets to be flat or marginally down.
On the recent cancellation of 2G licences, Nayyar said that they are evaluating the situation. Etisalat is a client of Tech Mahindra. “We do have a bank guarantee that covers the contract. But so far we have not felt the need to invoke it,” said Sonjoy Anand, Chief Financial Officer, Tech Mahindra.
