Tech Mahindra Q2 cons net up 23% Yoyo to Rs 296 cr

Tech Mahindra  's second quarter consolidated net profit rose 23 percent year-on-year to Rs 296 crore, helped by new deal wins and acquisitions.

Its revenue in July-Sep was up 22 percent at Rs 1,631 crore.

On a sequential basis however, Tech Mahindra's net profit was down 13 percent and revenue rose 6 percent.

Analysts on average had expected the Mahindra group company to report a net profit of Rs 273 crore on revenue of Rs 1,616 crore in the second quarter.

Before share of associate companies, Tech Mahindra's net profit in the second quarter was at Rs 178 crore, up 28 percent year-on-year.

In US dollar terms, its net profit, including share of associates, rose 4 percent to USD 55 million and revenue was up 1 percent at USD 299 million.

Last quarter, Tech Mahindra acquired 100 percent stake in Hutchison Global Services for USD 87.1 million and it also picked up 51 percent in Bharti Group company Comviva Technologies.

Hutchison Global Services, which had employee strength of 12,011 as of Sep 30, was consolidated from the quarter, the company said.

Including HGS, Tech Mahindra had 50,479 employees, which included 24,224 software professionals, 25,003 BPO employees and 1,252 support staff.

As of Sep 30, Tech Mahindra had debt of Rs 1,286 crore and cash and cash equivalents stood at Rs 359 crore.

The company won several deals in the second quarter, including a multi-million dollar managed services contract from a UK telephone company and a system integration and managed services project by a Middle East telco. It had 126 active clients as of Sep-end.

Tech Mahindra shares closed up 0.4 percent at Rs 955.45 on Monday. The results were announced after markets closed.

Source: www.moneycontrol.com

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Gaurav Agarwal

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DENIP Consultants Pvt Ltd