Tech Mahindra Q2 net up 57.6% at Rs 718.4 crore

IT services firm Tech Mahindra today posted a 57.6 per cent growth in consolidated net profit at Rs
718.4 crore for the second quarter ended September 30, aided by growth across verticals especially retail, travel and logistics and uptick in demand from Europe.

The company had posted a net profit of Rs 455.8 crore in the July-September quarter of 2012-13 fiscal, it said in a statement.

Consolidated revenues of India's fifth largest software services exporter grew 35.4 per cent at Rs 4,771.5 crore in the second quarter this fiscal from Rs 4,103.2 crore in the year-ago period, it added.
     
The company said it has not obtained the audit opinion on the merged entity's consolidated financials for Q2 2012-13 fiscal.

In June this year, Tech Mahindra had announced completion of Mahindra Satyam's merger with itself to a firm with a turnover of $2.7 billion.

On a quarter-on-quarter basis, Tech Mahindra's net profit rose 4.7 per cent, while revenues were up 16.3 per cent.

Commenting on the earnings, Tech Mahindra executive vice chairman Vineet Nayyar said, "I am confident of our alignment with the needs of next generation consumers, with industry best practices and core strengths that our solutions bring."

The Digital World is the next phase of the company's growth and Tech Mahindra is ready to ride that wave, he added.

In dollars, the company posted revenues of $758 million (up 17.6 per cent y-o-y and 4.7 per cent q-o-q), while net profit stood at $114 million, up 36.4 per cent y-o-y.

The firm's q-o-q revenues growth of 4.7 per cent is in line with industry expectations as well as with its peers.

During the July-September quarter, TCS saw dollar revenue rising 5.4 per cent sequentially, while that of Infosys, HCL Technologies and Wipro grew by 3.8 per cent, 3.5 per cent and 2.7 per cent, respectively.

"The winning trio for us this quarter -- growth across verticals, regions and practices -- reflects Tech Mahindra's new found energy and alignment to win large deals, as well as participate with customers in their transformation journey," Tech Mahindra managing director and CEO C P Gurnani said.

Tech Mahindra's judicious investments in building connected solutions and relentless focus on enhancing customer experience is showing results, he added.

The firm's total headcount stood at 85,234 with software professionals at 55,432, BPO at 23,225 and sales & support at 6,577 for the period under review.

Tech Mahindra reduced its debt by Rs 412 crore to Rs 335 crore as of September 30, while cash and cash equivalents stood at Rs 3,273 crore for the same period.