Tech Mahindra Q1 net profit up 1.4% at Rs 972.3 cr, revenue rises 5.2%

IT major Tech Mahindra on Monday reported 1.4 per cent rise in consolidated net profit at Rs 972.3 crore for the June 2020 quarter.

The company had registered a net profit of Rs 959.3 crore in the corresponding quarter of the last fiscal, Tech Mahindra said in a statement.

The consolidated revenue stood at Rs 9,106 crore in the quarter under review, up 5.2 per cent from Rs 8,653 crore in the year-ago period.

Earnings per share (EPS) was at Rs 11.07 for the quarter ended June 30, 2020.

In dollar terms, the net profit fell 7.1 per cent to $128.8 million, while revenue declined 3.2 per cent to USD 1,207.5 million from the year-ago period.

 

Tech Mahindra's total headcount stood at 1,23,416 people, lower by 1,820 employees on a sequential basis.

Its active clients base stood at 981, while cash and cash equivalent was at USD 1,378.4 million as of June 30, 2020. "We are witnessing a wave of new-age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation," Tech Mahindra Managing Director and CEO CP Gurnani said.

He added that the company is well-positioned to capture such spends and its endeavor is to be back on the growth path amid increased signs of demand normalisation.

"Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimisation," Tech Mahindra Chief Financial Officer Manoj Bhat said.

He added that cash conversion has been strong while the company aims to improve profitability margins as demand normalises.