Tech Mahindra net up 27% on forex gains, higher revenues

Our Bureau Mumbai | Updated on March 12, 2018 Published on August 12, 2013

Growth across sectors such as manufacturing and media and entertainment helped Tech Mahindra record a 27 per cent jump in net profit at Rs 686.3 cr in the quarter ended June 30.

Software solutions company Tech Mahindra has posted a 27 per cent rise in consolidated net profit for the first quarter ended June 30, riding on the back of broad-based growth in the US and forex gains.

This is the first set of numbers announced by the company after Tech Mahindra, in June, completed the merger of Mahindra Satyam with itself to create the country’s fifth largest software services firm. Net profit went up to Rs 686.3 crore against Rs 540.5 crore in Q1 2013. Revenues were up 21.7 per cent to Rs 4,103.2 crore (Rs 3,372.7 crore).

“The US market is increasingly looking good. ‘Green shoots’ are visible and palpable,” said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra. The company’s American operations grew over 11per cent.

“Overall, the market is turning for the better…discretionary spend in the US is higher (than other geographies),” said C.P. Gurnani, Managing Director. On the enterprise side, the company signed three large deals during the quarter.

The weak rupee vis-à-vis the dollar helped the company’s cause this quarter. Other income, which includes forex gains of $24 million (about Rs 144 crore), went up 83.4 per cent to Rs 207.3 crore (Rs 113 crore), said Chief Financial Officer Milind Kulkarni.

The company’s telecom business grew 2.5 per cent. Among other verticals, media and entertainment grew 8.7 per cent, while retail grew 6.1 per cent, and manufacturing, 5.7 per cent. “Macroeconomic conditions are good as far as the company is concerned. We hope that profitability will continue at the same level,” said Nayyar.

Ahead of the results announcement, the Tech Mahindra scrip was up 1.71 per cent to close at Rs 1,265.8 on the BSE.

Published on August 12, 2013
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