TechM’s Q3 net slips 4.7%

Our Bureau Mumbai | Updated on January 31, 2020

IT services firm Tech Mahindra reported a 4.7 per cent drop in its consolidated net profit for the quarter ended December 31 to ₹1,145.9 crore compared with ₹1,202.9 crore last year.

Revenues from operations, however, were up 7.9 per cent to ₹9,654.6 crore in the quarter from ₹8,943.7 crore in the corresponding period last year.

In dollar terms, the net profit was up 1.3 per cent sequentially to $160.6 million, while revenue grew 5.1 per cent to $1,353 million in the quarter under review.

“We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 5G, which continues to be a key focus area in the year ahead,” Tech Mahindra Managing Director and CEO CP Gurnani said, adding that this is a quarter of strong growth across the company’s communications and enterprise businesses. “We continue to invest in emerging technologies and streamline delivery as we ready ourselves for the next phase of growth,” Manoj Bhat, chief financial officer at Tech Mahindra said.

The company's total headcount slid by 683 people to 1,30,839 as of December 31.

Tech Mahindra also announced the acquisition of 70 per cent stake in Bengaluru-headquartered Cerium Systems.

“Cerium will boost the company’'s Engineering Services practice in VLSI (very large scale integration) and embedded software. We continue to invest in niche digital assets complementing our service offerings. Cerium provides cutting edge solutions with a strong foothold in global semiconductor industry,” Tech Mahindra Head of Corporate Development and Portfolio Companies Vivek Agarwal said.

Published on January 31, 2020

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