The country's sixth largest software exporter Tech Mahindra said its second quarter consolidated net profit rose 23 per cent year-on-year to Rs 296 crore, buoyed by new deals and acquisitions.

The company said in a statement that its revenue from services between July and September was up 22 per cent at Rs 1,631 crore. Operating profit jumped 65 per cent year on year at Rs 338 crore, for the quarter.

The company’s income from operations increased 18.98 per cent to Rs 1,507.87 crore in the quarter under review from Rs 1,267.27 crore in the year ago period.

In US dollar terms, its net profit, including share of associates, rose 4 per cent to $55 million and revenue was up one per cent at $299 million.

Last quarter, Tech Mahindra acquired 100 per cent stake in Hutchison Global Services for $87.1 million and also picked up 51 per cent in Bharti Group company, Comviva Technologies.

As of September 30, Tech Mahindra had debt of Rs 1,286 crore and cash and cash equivalents at Rs 359 crore.

The company said it won a multi-year multi-million dollar managed services contract from a leading telco in the UK.

As part of the contract, TechM will provide ICT Operations Managed Services along with running a service operations transformation programme over the contract duration.

Tech Mahindra is the IT outsourcing business of the $15-billion Mahindra group. Executive Vice-President Vineet Nayyar earlier had said that the company, which is in the process of merging Satyam Computer with itself, is set to finish the task ahead of schedule.

(This article was published on November 5, 2012)
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