Tech Mahindra posts net loss of Rs 221 cr in Q4

The company did not disclose the name of the customer, market sources suggest that the payment may have been made to British Telecom for a long-term strategic transformation contract.

In rupee terms, the company reported a consolidated net profit after tax and before exceptional item of Rs 218.9 crore for the fourth quarter as against Rs 196.1 crore in the previous corresponding quarter, a 11.6 per cent growth. Revenues touched Rs 1021.8 crore in the period as compared with Rs 874.5 crore in the previous corresponding period, an increase of 16.9 per cent.

Consolidated revenue for the full year ended March 31, 2008, grew by 28.6 per cent from Rs 2,929 crore in the financial year 2007 to Rs 3,766.10 crore in the financial year 2008.

Consolidated net profit grew by 25.6 per cent from Rs 612.6 crore (excluding exceptional items) to Rs 769.6 crore in financial year 2008. Consolidated net profit after exceptional items was at Rs 329.9 crore.

Anand Mahindra, chairman, Tech Mahindra, said: "Our robust results reinforce our leadership position in our chosen vertical. Our alignment to customer needs and our investments in the telecom domain have positioned us well for growth." British Telecom holds a 31 per cent stake in Tech Mahindra and contributes to over 60 per cent of its revenue. AT&T is its other major client, contributing 16-17 per cent.

The firm earned 19.4 per cent, 73.6 per cent and 7 per cent of its revenues from the US and Canada, Europe (primarily from British Telecom) and rest of the world regions respectively. The number of clients rose from 83 in FY07 to 107 in FY08. The consolidated headcount grew from 19,749 in March 2007 to 22,884 in March 2008, a growth of 15.9 per cent.

Vineet Nayyar, vice-chairman and MD, said: "Our strategy of building long-term partnerships with our customers by pursuing multi-year deals has yielded dividends this quarter. These deals are a reflection of the confidence reposed in us by our customers."