Telecom-solutions company Tech Mahindra has reported a 91.6 per cent rise in net profit for the quarter ended June 30, largely driven by its share of profit from Mahindra Satyam and increase in revenues.

Net profit for the Mumbai-based company stood at Rs 276.5 crore as against Rs 144.3 crore reported in the same quarter a year ago.

Revenues were up by 14 per cent to Rs 1,292.5 crore (Rs 1,133.7 crore).

Recently, associate company Mahindra Satyam had achieved a net profit of Rs 225 crore in the first quarter ended June 30, as against a loss of Rs 327 crore in the preceding quarter. Since Tech Mahindra has a 42.65 per cent stake in Mahindra Satyam, the former has picked up Rs 96 crore as its share of the Hyderabad-based company's profit.

If the contribution from Mahindra Satyam were to be discounted, Tech Mahindra's net profit would be up by 25 per cent to Rs 181.2 crore.

Active client-count of Tech Mahindra stood unchanged at 128. During the quarter gone by, the company added 4,517 employees, of which 2,793 were for back-office purposes. It now employs 27,920 employees in all.

The operating environment for export-dependant software companies continues to be challenging with S&P's downgrade of the US and the debt crisis in Europe.

“We have not seen any change in demand for IT services in telecom, more so because recovery in this sector has lagged behind other sectors,” Mr Vineet Nayyar, Vice-Chairman, Chief Executive Officer and Managing Director of the company, said at a news conference here on Friday.

The company has given wage hikes to the tune of 12 per cent for offshore staff and 2.5 per cent for onshore employees.

Ahead of the results announcement, the Tech Mahindra scrip was up by 1.14 per cent to close at Rs 734.75 on the Bombay Stock Exchange on Friday.

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