Tech Mahindra Q1 net profit up 22%

Tech Mahindra,India's 6th largest software exporter,said net profit jumped to Rs 338 cr.

Written by Agencies | Mumbai | Published:August 9, 2012 6:47 pm

India’s sixth largest software exporter Tech Mahindra today posted a 22 per cent jump in net profit to Rs 338 crore for the first quarter ended June 30 on the back of improved margins. The leading telecom software firm had posted a net profit

of Rs 276 crore in the same period last year. “Our focus on operational efficiencies has led to margin improvement. We continue to focus on expansion of our service

offerings and increasing business momentum through customer centricity and increased market coverage,” Tech Mahindra MD and CEO Vineet Nayyar said.

“We had a steady quarter which saw improved profitability. We have seen signs of growth in our non-BT (British Telecom) business and sequential growth of 1.5 per cent in constant currency,” he said.

The company’s operating profit (EBITDA) stood at Rs 330 crore,up 38 per cent on Q-o-Q. Revenue rose 19 per cent at Rs 1,543.42 crore in the quarter under review from Rs 1,292.48 crore in the April-June 2011 period.

The firm’s debt as of June 30 was Rs 886 crore,a drop of Rs 240 crore during the quarter. Cash and cash equivalent stood at Rs 280 crore on balancesheet as of June 30.

“Global economic situation continue to remain volatile and uncertain. The most immediate risk seems to be emanating from delayed or insufficient policy actions. Customers are scrutinising all aspects of expenditure including IT spend and

looking at avenues to minimise financial commitment,” Nayyar added.

“However,we expect steady growth and earnings,he said,adding Tech Mahindra added 6 new clients in the quarter.

Nayyar said,”pricing continues to be stable for our BT business. Following internal financial pressure,IT spends were down and therefore we are seeing slight degrowth in absolute terms.”

The company’s total headcount stood at 40,630. The firm will shortly announce a wage hike for its employees which will be effective from July 1,he said.

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