Tech Mahindra Q1 net up 7 %

Tech Mahindra announced a 7.2 per cent jump in its net profit at Rs.676 crore for the first quarter ended June 30, 2015. The company’s revenue for the period was up 23 per cent at Rs.6,294 crore, while operating profit rose marginally to Rs.936 crore. The operating margin declined by 30 basis points to 14.9 per cent. Other income was up significantly at Rs.136.6 crore (Rs.89.3 crore).

“The U.S., which is the engine driving global growth in the sector, is looking good with the possible of a small interest rate hike,” Vineet Nayyar, Executive Vice-Chairman, Tech Mahindra, told a media conference. “Overall, there is a positive sentiment in the global economy and the IT sector has the right environment to grow.”

He said the quarterly performance by Tech Mahindra was ‘in line with expectations.’

C.P. Gurnani, Managing Director and CEO, Tech Mahindra, said the low growth during the quarter was due to the seasonality of the mobility business which, along with higher H1-B visa costs impacted profit margins, “where we have to do a lot of work. Our acquisitions are of strategic nature to fill gaps or to enter new areas. Operating margins are initially under pressure and the challenge is always how to increase it.”

Tech Mahindra’s deal pipeline is ‘much better’ than last year and it has 770 active clients and added three more during the quarter. During the period, the headcount was at 1.04 lakh. The company added 392 professionals.

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Source:Thehindu