Tech Mahindra's Q2 net jumps by 14 percent

Tech Mahindra, a leading software service firm, has posted a quarter-on-quarter growth of 14.1 percent in net profit during the second quarter ended September, at Rs.719.7 crore against Rs.630.7 crore in the previous quarter.

However, the increase was marginal compared to the corresponding quarter of the last year. The net profit was Rs.718.4 in Q2 of 2013-14.

The revenues during the quarter were Rs.5,488 crore, up by 15 YoY and 7.2 percent QoQ. The revenues in dollar terms were $900 million, a YOY increase of 18.7 and QoQ increase of 5.2 percent.

"Robust growth in key verticals this quarter underpins our belief in our strategy of continuous investment in capabilities. We are also heartened by the growth in our larger customers which demonstrates their trust and faith in our partnership," said executive vice president Vineet Nayyar.

"We are seeing increasing interest in digital enablement in our customer base, and our unique combination of capabilities in both the communications domain and the enterprise domain positions us well in the marketplace. Our Q2 performance is a reflection of our strength in both these areas," said MD and CEO C.P. Gurnani.

The Mumbai-based firm added 2,580 professionals during the quarter, taking the total headcount to 95,309.

It also announced that a leading fiber based material company has selected it to manage its Information Technology operations. It described this as multi-million and multi-Euro agreement.

Tech Mahindra also signed an agreement with Global Aerospace and Transportation Company for providing engineering solutions. The company also won a large deal from a leading global specialty chemical supplier in the area of managing IT infrastructure and applications.