Tech Mahindra Q4 net up 25 per cent at Rs 377 crore
Software exporter Tech Mahindra reported on Tuesday a 25 per cent increase in its consolidated net profit at Rs 377.24 crore for its fourth quarter that ended on March 31, 2013.
The company, part of the $15.9 billion Mahindra Group, had posted a net profit of Rs 302.50 crore in the year-ago period, it said in a filing to the Bombay Stock Exchange.
Consolidated income of the firm also rose by 34 per cent to Rs 1,907.17 crore in the March quarter of last fiscal year against Rs 1,419.05 crore in the same quarter of fiscal year 2011-12.
"I am satisfied that we have delivered profitable growth for FY13, with significant margin improvement. I am confident that with our deep domain expertise in Telecom and a full portfolio of offerings, we would be able to leverage our leadership position to deliver higher value for all our stakeholders," Tech Mahindra executive vice president Vineet Nayyar said.
In terms of revenue break-up segment wise, the company's telecom service vertical was followed by telecom equipment, BPO and others.
The company's consolidated net profit for the entire fiscal year 2012-13 rose to Rs 1,287.81 crore from Rs 1,095.54 crore in FY12. Its consolidated income increased to Rs 6,873.08 crore as against Rs 5,489.69 crore during the same period.
"The Board of Directors have recommended a dividend of Rs 5 per share (50 per cent) for 2012-13 fiscal," it said.
Its total headcount stood at 47,498 for the year ended March 31, 2013 of which software professionals accounted for 24,410, BPO (21,552) and support staff at 1,536, it said.
Tech Mahindra's cash and cash equivalent stood at Rs 710 crore as of March 31, 2013, the company added.
The company reported a debt of Rs 1,380 crore as of March 31, 2013.
On the client side, Tech Mahindra said its active client count stood at 151 in FY13 against 130 in FY12.
On the outlook, Tech Mahindra managing director C P Gurnani said, "We are optimistic about FY14, buoyed by our deal pipeline, business traction from recent acquisitions and leverage of business synergies with Mahindra Satyam."
The board of directors has recommended a dividend of Rs 5 per share (50 per cent) for fiscal year 2012-13.
Asked about revenue from UK firm BT, Mr Nayyar said, "BT revenue has shrunk but it is still the biggest customer."
Last year, UK telecom major BT Group exited Tech Mahindra, which was set up as a joint venture with M&M Group to develop software.
Tech Mahindra's total headcount was lower by 1,561 people at the end of its fourth quarter (47,498) compared to the October-December 2012 period when the total headcount stood at 49,059 people.
While Tech Mahindra added 51 people for its sales and support operations, about 600 software professionals and 1,013 BPO professionals left the company in the said quarter.
The company had 24,410 software professionals, 21,552 BPO professionals and 1,536 sales and support staff at the end of the quarter.
"What we are doing is reducing the staff where we are not making enough money. It has to meet a certain threshold. We have a programme called cure or close. So if we can't cure it, we close it," Mr Nayyar added.
Tech Mahindra's cash and cash equivalent stood at Rs 710 crore as of March 31, 2013. Its books have a debt of Rs 1,380 crore.
On the issue of merger of Mahindra Satyam with Tech Mahindra, he said, "The hearing of the case is complete. The judgement is reserved and we expect a decision to come by the second week of June."
Shares in Tech Mahindra, on Tuesday, ended at Rs 909.75 on the BSE, down 1.33 per cent from the previous close.
