Tech Mahindra Q2 net profit rises 57.6 per cent to Rs 718.4 crore

IT services company Tech Mahindra on Thursday reported a net profit of Rs 718.430 crore for the quarter ended September 30 2013.

The company posted a net profit of  Rs 455.8 crore during the corresponding period of last fiscal. The 57.6 per cent rise (year-on-year basis) in net profit was aided by growth across verticals especially retail, travel and logistics and uptick in demand from Europe.

Net profit rose 4.7 per cent sequentially against Rs 686.3 crore in the first quarter of this fiscal.

While the company recorded total income of Rs 4,809.570 crore in the last quarter, it reported Rs 1,567.420 crore in total income for the corresponding period of last fiscal.

Commenting on the earnings, Vineet Nayyar, executive vice-chairman of the firm 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 our growth and we are ready to ride that wave. 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 firm's consolidated revenues grew 16.28 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.  The firm's revenue  rose 16.3 per cent on a quarter-on-quarter basis.

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.

In US 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 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," said Tech Mahindra's managing director and CEO C P Gurnani.

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, 2013 while cash and cash equivalents stood at Rs 3,273 crore for the same period.

Stock of the firm ended 0.46 per cent higher at Rs 1,580 on the BSE Sensex on Thursday.

-With agency inputs