Tech Mahindra Q1 net profit rises 20.5%, revenues up 10%

Tech Mahindra posted net profit of Rs. 750.11 crore, up 27.9 percent from the year-ago period, while it fell by 9.5 percent sequentially for the quarter ended June 30, 2016.

The IT services company's consolidated revenues came at Rs. 6,920.93 crore, an increase of 9.9 percent year-on-year (YoY). On a month-on-month basis, revenues rose marginally by 0.5 percent for the quarter under review.

"We have had a steady quarter inspite of the seasonal weakness in our mobility business. We look forward to continuing our journey of improving the profitability of our business," said Vineet Nayar, Chairman, Tech Mahindra, in the company's statement.

In dollar terms, the IT services company posted net profit of $111.5 million on $1,031.5 million revenues. While net profit went up by 14 percent compared to the same quarter last year, it fell by 12.8 percent over the March 2016 quarter.

The company declared earnings per equity share at Rs.8.59 for the June 2016 quarter.

C.P. Gurnani, CEO cited new digital project wins and addition in large clients as accomplishments of the April-June quarter.

"Our business has done well on several parameters like large client growth, digital wins and strong cash flow. Automation and Delivery Excellence are two key focus areas for the year going forward," said C. P. Gurnani, MD and CEO, Tech Mahindra.

Tech Mahindra had 818 active clients at the end of the first quarter, out of which top 10 clients accounted for 40 percent of the total revenues. The company had 317 clients who accounted for more than $1 million in revenues and 120 clients who brought in revenues upwards of $5 million.

As many as 1784 employees were added, taking the total headcount to 107,216 employees during the April-June quarter this year. Attrition stood at 21 percent for the June 2016 quarter.

Segment-wise, IT recorded a slump in net profit by 9.5 percent, while Business Process Outsourcing profit gained by 3.9 percent sequentially.

Share prices of the IT company stood at Rs. 489.70 apiece, up 0.62 percent from its previous close at Rs. 486.70.