Tech Mahindra has posted a 25 per cent rise in consolidated net profit at Rs 377 crore in the fourth quarter ended March 31, beating analysts estimates.
The software exporter had posted a net profit of Rs 302 crore in the year ago period.
The company’s consolidated revenues rose 34 per cent to Rs 1,907 crore from Rs 1,419 crore recorded during the same period a year ago.
“Our acquisitions have worked well and are delivering, even though they are at an early stage,” Tech Mahindra Executive Vice-Chairman Vineet Nayyar said, referring to the company’s buys of Comviva Technologies and Hutchison Global Services.
These earnings of the above mentioned companies were also included in the financial results.
“The US is on recovery path and we are seeing some increase in discretionary spends. Europe continues to have issues,” Nayyar said.
The court’s decision on the merger of the two companies – Tech Mahindra and Mahindra Satyam – is expected by the first or second week of June.
“If the judgment is positive, we hope it is, the two companies will be merged,” he added.
FULL-YEAR NET UP
For the full-year ended March 31, its consolidated net profit grew 17.6 per cent to Rs 1,288 crore on revenues of Rs 6,873 crore.
The company’s board has recommended a dividend of Rs 5 per share for the FY13, while its headcount stood at 47,498. Its debt stood at Rs 1,380 crore and had 151 active clients (up from 130 in FY12) as of March 31, 2013. “We have had a good quarter, despite revenues from BT being down,” Managing Director C.P. Gurnani said, adding the focus on operating metrics and fluctuations in certain currencies helped.
However, BT continues to be the company’s biggest customer, he added. “Tech Mahindra reported better than expected revenue growth for the fourth quarter, but disappointed slightly on the operational margin front. The dollar revenues came in at $353.2 million, up 7.2 per cent on a quarter-on-quarter basis, aided by acquisition of HGS and Comviva,” said Ankita Somani (Research Analyst-IT & Telecom) with Angel Broking.
The dollar revenues from non-BT accounts grew by 13.3 per cent on quarter-on-quarter to $265 million, while revenue from BT declined by 7.6 per cent (QoQ). Shares of Tech Mahindra closed down 1.33 per cent at Rs 909.75 a share on Tuesday.
rajesh.kurup@thehindu.co.in