Tech Mahindra net up 66.7% y-o-y to Rs 303cr

Tech Mahindra, reported a consolidated net profit growth of 66.7 per cent at Rs 302.8 crore for the second quarter ended September 2008 from Rs 181.6 crore in the corresponding quarter last financial year.

Revenue for the second quarter at Rs 1164.8 crore was up 29 per cent from Rs 897.5 crore in the same quarter last fiscal.

Sequentially (trailing quarter) the company’s net profit was up 17 per cent from Rs 258 crore--and revenues increased by 4.3 per cent.

Rupee depreciation impacted the company’s other income, which registered a loss of Rs 32 crore, on account of hedging losses of $10 million (around Rs 49 crore). Tech Mahindra also had a tax writeback of Rs 67.3 crore for this quarter. Last quarter the company had a forex gain of $4 million.

“Our focus has been getting long-term deals. We have a contract pipeline of $2.5 billion for the next couple of years. But looking at the current scenario we are treading cautiously. This will certainly impact the discretionary spend of companies. But thankfully we are not catering to the BFSI segment nor do we have a large exposure to the US markets,” said Vineet Nayyar, vice chairman and managing director, Tech Mahindra.

The company’s total client base is 110, with no new client addition for this quarter. It derived 23.2, 68.7 and 8.1 per cent of its revenues from the US, Europe and rest of the world respectively. Tech Mahindra consolidated headcount increased from 24,369 in June 2008 to 25,135 in September 2008.