Swayed by the Eurozone crisis, IT major Tech Mahindra today said its top-line revenue has been severely affected by the currency fluctuations in the first quarter of this fiscal.
"We had a bad quarter due to the currency volatility that affected our revenue," Tech Mahindra Vice Chairman Vineet Nayar told reporters here.
The company which sees more than 50 per cent of its business from Europe, especially the UK, has recorded a growth of 9.65 per cent in its consolidated net profit at Rs 144 crore for the first quarter ended June 30, 2010, over the same period last year.
But in a quarter on quarter basis, the net profit was down by 36.4 per cent compared to Q4 of FY10.
Total income rose to Rs 1,158.96 crore in the first quarter ended June 30, from Rs 1,086.9 crore in the same quarter the corresponding fiscal.
On the standalone basis, the company has posted a net profit of Rs 128 crore in the April-June quarter, down 4.75 per cent over the same year-ago period. The company added 4 new clients during the quarter.
The company got 55 per cent of its business from Europe while 32 per cent came from North America and 13 per cent from the rest of the world, Tech Mahindra Chief Executive Officer Sanjay Kalra said.
It has made its entry into Latin America last quarter, Kalra said.
During the quarter the company added 1,743 personnel, taking its total headcount to 35,267, and due to the work force addition the company could do only 69 per cent of its workforce utilisation, Chief Financial Officer Sonjoy Anand said.
The company has earmarked a capex of $40-50 million this year, he said.
