Tech Mahindra net up 22% on weak rupee

Depreciating rupee, share of profit from associate company Mahindra Satyam aided Tech Mahindra’s net profit for the quarter ended June 30.

Net profit stood at Rs 338.5 crore, up 22.4 per cent from Rs 276.5 crore in the year-ago period. Profit from Mahindra Satyam stood at Rs 150.2 crore, against Rs 96 crore in the year-ago period. Growth in non-BT business propelled the company’s revenue to Rs 1,543 crore, representing a growth of 19.4 per cent from Rs 1,292.5 crore. However, in US dollar terms, the company’s revenue was flat sequentially at $281 million.

Tech Mahindra’s Ebidta saw the benefits of rupee depreciation, it was up by 440 basis-points at Rs 330 crore. Rupee depreciation had a positive impact of 300 basis-points and the rest was attributed to operational efficiencies. “We have had a steady quarter, including profitability. Non-BT business grew two per cent on a constant currency basis. We do see a steady demand in the managed services offering. However, the global environment continues to be uncertain,” said Vineet Nayyar, Vice-Chairman, MD and CEO, Tech Mahindra.

Merger
It also stated the merger with Mahindra Satyam has reached its final stages. It has received approval from the CCI and the shareholders gave their approval on June 7.