Tech Mahindra bottom line up 11.7% to Rs 223 crore

Software company Tech Mahindra posted a net profit of Rs 222.8 crore for the third quarter ended December 31, 2008, an increase of 11.7 per cent from Rs 199.4 crore in the corresponding quarter last financial year.

Revenues for the quarter rose 16.6 per cent to Rs 11,32.2 crore from Rs 970.4 crore registered in the same quarter last year.

However, the sequential numbers were impacted due to the depreciation of the pound against the rupee and the general slowdown in the business environment. Net profit was down 26.4 per cent from Rs 302.8 crore and revenue dipped 2.7 per cent as against Rs 1,164.8 crore. For the quarter, the company had posted a forex loss of $10 million (Rs 49 crore).

“Our backlog of long-term deals has added value in these conditions and will provide enhanced visibility to our performance going forward. While we do see the first quarter of FY10 turning out to be good, the next quarter does looks difficult,” said Vineet Nayyar, vice chairman and managing director, Tech Mahindra.