Tech Mahindra Posts Jump in Quarterly Net Profit, Looks to Expand

IT major Tech Mahindra on Monday posted a 7.2 percent rise in net profit at Rs. 676.07 crores for the quarter ended June 30, 2015.

This is against a net profit of Rs. 630.72 crores in the year-ago period, Tech Mahindra said in a statement.

The company's revenues grew 22.9 percent to Rs. 6,293.8 crores in the quarter under review from Rs. 5,121.50 crores in the same period last year.

"Our results are in line with our expectations, but we sense traction across our markets and remain hopeful of improving our performance by expanding our business in coming quarters," Executive Vice Chairman Vineet Nayyar said.

In dollar terms, net profit was up 1.2 percent year-on-year at $106 million, while revenue grew 15.7 percent to $989 million.

IT accounted for Rs. 5,843.23 crores of the revenues, while BPO contributed Rs. 450.59 crores in the said quarter.

"Our strategic investments and initiatives across Digital are resonating well with the businesses we serve and holds potential to deliver opportunities that we can leverage upon," Tech Mahindra Managing Director and CEO C P Gurnani said.

Tech Mahindra added 392 professionals during the quarter, taking its total headcount to 1,03,673 people. Of this, software headcount accounted for 71,997 people, while the number of BPO professionals stood at 24,394.

Its cash and cash equivalent was at Rs. 3,350 crores as of June 30, 2015. Tech Mahindra shares closed at Rs. 519 apiece, up 1.59 percent from its previous close on the BSE.