The Hindu Business Line : Tech Mahindra net up 19%

Improved utilization rates coupled with client additions and a one time gain in other income have enabled the Pune-based telecom solutions provider, Tech Mahindra to report a 19 per cent rise in net profit for the quarter ended December 2007.

The company, which is a joint venture between Mahindra & Mahindra Ltd and British Telecom, reported net profit of Rs 199.5 crore in the December quarter as against Rs 167.4 crore in the corresponding year ago quarter.

The revenues were up by 26.1 per cent to Rs 970.4 crore as against Rs 769.2 crore in the year ago quarter.

For the December quarter, the company reported other income to the tune of Rs 30 crore. “Of this, Rs 25 crore is the forex gains that we had in the quarter,” said Mr Sanjay Kalra, President, Strategic Initiatives, Tech Mahindra.

The company has also seen a substantial sequential growth in its non British Telecom business. “Moreover, the number of clients increased from 96 in the second quarter to 105 in the third quarter,” said Mr Kalra.

The number of clients generating revenue of more than $15 million now stands at 6. On a sequential basis, utilization rates have improved to 69 per cent from 63 per cent.

The Tech Mahindra scrip was down by 14.47 per cent to close at Rs 706.25 on the NSE today.

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