Tech Mahindra Q3 profit jumps 14% to Rs 856 cr

Tech Mahindra Q3 profit jumps 14% to Rs 856 cr

Tech Mahindra, India’s fifth-largest software exporter, on Monday reported an increase of 14% in its net profit at Rs 856 crore for the third quarter ending December 31 2016, compared with Rs 751 crore in the same period last fiscal.

The company registered net profit after tax at Rs 643.4 crore  in the September quarter. Total revenue rose 12.8% to Rs 7,558 crore on an annual basis, and at  5.4% over the preceding quarter.

Commenting on the performance of the company, Tech Mahindra Vice Chairman Vineet Nayyar said it is fuelled by a faster revenue growth driven by non-US markets.

“The strong deal wins and business momentum during the quarter reaffirm that we are on the right track to capitalise on the opportunities from the global digital transformation, and see measurable benefits from that,” he said.

Nayyar acknowledged the threat posed by the Donald Trump administration, but termed the looming challenges as a “nuisance” which will not “disorient” the nimble IT sector. “I don’t see major disruptions for the tech sector. It is a nuisance which will have bureaucratic hurdles,” he added.

EBIT (earnings before interest and tax) jumped 13.7% quarter-on-quarter to Rs 938.5 crore and margin expanded by 91 basis points to 12.41% in the quarter gone by. TechM added cash of Rs 950 crore during the reporting quarter, taking the total cash/equivalents to Rs 4,951 crore as of end December. The company added 12 clients during the third quarter, taking the total number to 837.  IT attrition fell to 18% from 19% on a sequential basis. The company added 4,209 professionals during the quarter, taking the total headcount to 117,095.

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