Tech Mahindra Q1 profit gets a topline lift, up 28% at 796 cr

Software exporter Tech Mahindra today reported a 28 per cent year on year growth in its June quarter net profit at Rs 796 crore, buoyed by a surge in revenues.
Vice-Chairman Vineet Nayyar said: "We have had a steady quarter in spite of seasonal weakness in our mobility business. We look forward to continuing our journey of improving profitability of our business."
It had posted a profit of Rs 880.6 crore in January-March.
Nayyar added that quarter-on-quarter performance was affected largely by a dip in margins, which slipped to 14.9 per cent as against 17 per cent in the March quarter on an increase in visa costs and seasonal downturn in some clients.

Its Chief Financial Officer Milind Kulkarni said the company incurred a cost of USD 11 million on H1B visas while there was a hit of 1.80 per cent because of the seasonal downturn with select clients of Comviva.
Its consolidated revenues grew to Rs 6,920.9 crore, from Rs 6,293.8 crore in the year-ago period.

Terming the UK's vote to exit the European Union as the "biggest destabilising factor", Nayyar said it will take at least one year for the uncertainties to settle down.
He added that the US election verdict can also be "potentially disruptive".
Nayyar hoped that the company's "critical services" will not be affected.

MD and CEO C P Gurnani said Britain accounts for 10 per cent of the company's revenues and the spillovers in an inter-connected world are something the company needs to keep in mind.
Gurnani said the delivery on one deal lifted the share of digital revenues to above 20 per cent, from 11 per cent in the year-ago period, and is optimistic that this will be maintained.
Interestingly, he said Indian customers are featuring among some of the digital deal wins.
He saw banking and finance and healthcare verticals as the engines of growth at present and added that the enterprise vertical as a whole will grow at 12 per cent this fiscal.

Its utilisation rate moved up to 78 per cent from the year-ago's 74 per cent and the 77 per cent in the preceding March quarter.
It added 1,784 employees during the quarter to take its total strength to 1.07 lakh, but the attrition too remained sticky at 21 per cent.
The stock closed with gains of 0.62 per cent at Rs 489.70 on BSE as against a correction of 0.17 per cent in the benchmark.