Tuesday, August 1, 2017

Tech Mahindra reports 6.67% rise in Q1 net profit, beats estimates

IT major Tech Mahindra reported an about 7 per cent increase in June quarter profit, beating estimates, helped by higher revenue from its IT segment.

The country's fifth largest fifth-biggest software services exporter, reported profit at Rs 799 crore ($124.55 million) in Q1, compared with Rs 749 crore last year. On a quarter-on-quarter basis, the firm reported 35.8 percent rise in net profit.

In dollar terms, the company's net profit was up 11.2 per cent to $123.8 million, while revenues grew 10.3 per cent to $1.13 billion in April-June 2017 quarter from the year-ago period.

"Our June quarter performance reflects that we are moving in the right direction. We continue to realign and reshape our business in line with the market demands," Tech Mahindra Vice-Chairman Vineet Nayyar said.

CEO and MD CP Gurnani said despite all the headwinds in a seasonally weak quarter, the company's digital business grew ahead of expectations.

Its software headcount was at 78996 while BPO headcount stood at 30,322.

As of June 30, 2017, the firm had a cash and cash equivalent of Rs 6016 crore.

Its active client count in Q1 stood at 864. The firm added 21 active clients on a compared to the last quarter.

The earnings were announced after market hours. The Tech Mahindra stock closed 1.35 percent or 5.15 points higher at 385.25 level on the BSE.

(Business Today)

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