Tech Mahindra Q3 net dips 3.4% to Rs 759 crore

Mahindra group controlled IT services and solutions giant, Tech Mahindra has reported a 3.4 per cent decline in consolidated net profit for the third quarter ended December 31, 2015, at Rs 759 crore compared with Rs 785.6 crore in the second quarter of the current fiscal.

Revenues for the company grew 1.3 per cent for the quarter to Rs 6,701.1 crore compared to Rs 6,615.5 crore in Q2FY16.

Profits were hit mainly on account of lower other income which stood at Rs 63.9 crore as against Rs 165.8 crore in the second quarter of the current fiscal.

During the quarter, the company added 1,902 professionals with the software headcount now standing at 71,892 and BPO headcount at 28,279. Cash and cash equivalents for the company increased by Rs 1,448 crore sequentially to Rs 4940 crore. Active client base for Tech Mahindra stood at 801 at the end of the third quarter.

“We are on track towards gradual recovery resonated by our margin improvement over the last two quarters. We continue to focus on strengthening our core and leveraging it to build further traction in our business,” Tech Mahindra vice chairman Vineet Nayyar said.

Digital transformations

“We continue to drive growth in a seasonally weak quarter, through offerings that are echoing well with the market, which holds potential to deliver long term opportunities. We are enabling digital transformations for customers in the areas of IoT, automation, machine learning and artificial intelligence,” Tech Mahindra managing director and chief executive officer CP Gurnani said.

The challenge facing the industry now is to understand the full potential of digital technology and help customers make the best of it at the earliest. We believe we are well positioned to serve those interests, Gurnani added.

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