Tech Mahindra Q3 profit shrinks 30% to Rs 173 cr

IT major Tech Mahindra today posted a 30 per cent fall in consolidated profit after tax at Rs 172.78 crore for the quarter ended December 31, over the same period last fiscal.

The company had a consolidated net profit of Rs 222.87 crore during the December quarter last fiscal.

However, consolidated income from operations rose to Rs 1,187.29 crore during the October-December period of current financial year from Rs 1,132.20 crore of the same quarter a year ago, Tech Mahindra said in a filing to the Bombay Stock Exchange (BSE).

"During the quarter we saw definite signs of revival in activity across most of our customer base," Tech Mahindra Chairman Anand Mahindra said.

For the nine-months period ended December, Tech Mahindra, in which Mahindra & Mahindra holds majority stake, reported a consolidated profit after tax (PAT) of Rs 473.4 crore compared to Rs 784.1 crore in the corresponding period last fiscal.

Shares of Tech Mahindra today settled at Rs 1,135.35, up by 2.75 per cent on the BSE.

The December quarter results of Tech Mahindra are excluding Satyam Computer Services, which was acquired by the company last year as the company "is in the process of restating its financials", Tech Mahindra said.

In October last year, the Company Law Board had given extension till June 30, 2010, to Satyam for filing documents with various statutory authorities.

Capital market regulator the Securities and Exchange Board of India (Sebi) approved publishing of quarterly consolidated statements of Tech Mahindra, excluding Satyam Computer and its subsidiaries, the company added.

During the quarter, Tech Mahindra consolidated head count increased from 26,515 to 30,404.

In the quarter, the company restructured its organisation to improve customer focus and to address the changing needs of the marketplace.

The three-layer structure includes a Sales & Marketing layer, Solutioning & Services Delivery layer and Strategic Delivery Unit, Tech Mahindra said.

"Our investments in building capabilities and focus on emerging markets are beginning to pay dividends," Tech Mahindra Vice-Chairman Vineet Nayyar said.