Tech Mahindra posts Rs 805.3 cr net profit in Q3

Company's consolidated revenue stood at Rs 5,751.70 crore in the quarter under review

IT services firm Tech Mahindra today posted consolidated net profit at Rs 805.3 crore for the quarter ended December 31, 2014.

The city-based firm had registered a net profit of Rs 1,009.83 crore in the corresponding quarter last fiscal, Tech Mahindra said in a statement.

Its consolidated revenue stood at Rs 5,751.70 crore in the quarter under review, up 17.4 per cent from Rs 4,898.55 crore in the year-ago period.

The profit number for the quarter under review includes special adjustment of Rs 28.5 crore from Mahindra Engineering Services (MES) and hence are not comparable.

"Despite seasonal weakness of the third quarter and currency volatility, Tech Mahindra turned in a fairly robust performance. Our continued focus on operational excellence is yielding tangible results for our stakeholders," Tech Mahindra Executive Vice Chairman Vineet Nayyar said.

The company's revenues from its IT business stood at Rs 5,254.36 crore, while that from BPO segment stood at Rs 497.34 crore in the said quarter.

In dollar terms, net profit was up 9.5 per cent to USD 129 million compared to the July-September 2014 quarter, while revenue grew 2.7 per cent to USD 924 million on sequential basis.

"We believe our service portfolio coupled with the tuck-in acquisitions like MES have augmented our growth aspirations well, this quarter," Tech Mahindra Managing Director and CEO CP Gurnani said.

Tech Mahindra will make greater investments into digital transformation and ride the wave of opportunities that spot the business landscape today, he added.

The company added 2,700 professionals during the quarter, taking the total headcount to 98,009. The software headcount stood at 67,592, while the number of BPO employees was 23,566.

At the end of December 31, 2014, Tech Mahindra had Rs 4,214 crore in cash and cash equivalents.

Its active client count stood at 674 in the third quarter of the ongoing fiscal from 649 in the preceding quarter.

The board has also approved issue of bonus shares at 1:1 and sub-division of its equity shares in the ratio of 2:1 (ie two equity shares of Rs 5 each fully paid up for every one equity share of Rs 10 each fully paid up).

Shares of the company closed down by nearly 1 per cent at Rs 2,878.30 on the BSE.