Tech Mahindra Q3 net up 14% at Rs 856 cr

In dollar terms, net profit was up 11.4% to $126.3 mn, while revenue was up 10% to $1,116.1 mn

Tech Mahindra managed to beat Street expectations in its third quarter results for FY17. 

Net profit at Rs 856 crore was up almost 14% on a year-on-year basis and sequentially up 32%. Revenue grew 12.7% on a year-on-year at Rs 7,557 crore. 

The net profit for Tech Mahindra has been declining for the last three quarters. 

The big positive was a strong US dollar revenue growth that came in at 4% at $1,116 million on a sequential basis, these numbers were up 5% in constant currency basis. Tech Mahindra’s dollar revenue growth is best among its Indian peers. 

Tata Consultancy Services (TCS) reported a growth of 2% in US dollar revenues, Infosys declined marginally by 0.3% and HCL Technologies grew by 1.3%. 

On margins front too the company managed to perform better. The EBIT margins for the quarter came in at 12.4% compared to 11.5% in the last quarter (ended September 30, 2016). EBITDA (earnings before interest, tax, depreciation and amortization) was up 80 basis point at 15.7%.

“The strong deal wins and business momentum during the quarter reaffirm that we are on the right track to capitalize on the opportunities from the global digital transformation, and see measurable benefits from that,” said Vineet Nayyar, vice chairman, Tech Mahindra.

The company added 12 clients during the quarter taking the total number of clients to 837 from 825 reported in the second quarter of Fy2017. 

“Our differentiated offerings focused on the five pillars of our DAVID strategy—digitisation, automation, verticalisation, innovation and disruption, positions us as a strong partner of choice for global businesses,” said C P Gurnani, MD & CEO, Tech Mahindra.