Tech Mahindra net jumps 25.8% for Q2

India's fifth largest IT services provider, Tech Mahindra has reported a 25.8% jump in its net profit for the second quarter ended September 20, 2018.

The company clocked net profit of Rs 1,055.94 crore, as against Rs 839.3 crore in the corresponding quarter of the last financial year.

On sequential basis, companies net profit grew by 17.4%, from Rs 899.5 crore in the Q1 of the current financial year.

In terms revenue, the company witnessed a jump of 13.5% to Rs 8,629.85 crore in the Q2 of the current financial year, against Rs 7,606.4 crore in the corresponding quarter last financial year.

Meanwhile, company's scrips closed 3.04% higher on BSE on Tuesday at Rs 684.5 per scrip

“It’s been a satisfying quarter where our focus on digital transformation has helped us deliver a robust performance. Our strong deal wins especially in the Communication vertical coupled with our 10% plus sequential growth in digital revenues are a validation of our Run, Change and Grow strategy," C P Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra said.

On the vertical front, communications industry contributed 41.5% of the company's revenue.

”This has been a strong quarter with improving operating metrics across most of our business lines. Our focus on optimizing our operations has led us to the highest EBITDA level and margin improvement in excess of 2% sequentially and 4% on a YoY basis,” Manoj Bhat, CFO, Tech Mahindra said.

The new deal wins for the company during the quarter stood in excess of $550 million. The company also added one more client in its top $50 million bracket.

The company also increased its headcount by 4,839 people during the quarter to 1,18,391 people. However attrition remains to be a key issue and has reached 20% during the quarter.

Close to 48% of the company's revenues came in US dollar, and 11.4% in Euros, while 11.2% in Pounds.