Tech Mahindra Profit Falls, Margins Contract In Second Quarter
IT services provider Tech Mahindra Ltd. saw its quarterly profit decline 19.2 percent sequentially, missing street estimates.
The company's net profit for the second quarter fell to Rs 643.4 crore from Rs 796.5 crore in the previous quarter, it said in an exchange filing. The consensus of analyst estimates tracked by Bloomberg stood at Rs 700 crore.
Revenue increased 3.6 percent to Rs 7167.4 crore from Rs 6921 crore in the quarter before. This was slightly higher than the Rs 7078.3 crore figure pegged by a Bloomberg poll of analysts.
Revenue in dollar terms stood at $1,072.4 million, increasing 4 percent through the quarter, a separate press release by the company said.
Earnings before interest and taxes fell 0.2 percent to Rs 825.4 crore against Rs 827.3 crore quarter on quarter. The EBITDA margin contracted 40 basis points to 11.5 percent.
Tech Mahindra saw a constant curreny growth of 5 percent, on a quarterly basis.
The company has 825 active clients as of September 2016.
During the quarter, revenue from the IT business increased 3.9 percent to Rs 6684.6 crore, while revenue from the BPO services business declined 1.2 percent to Rs 482.8 crore.
Overall, it was a very good quarter for us with the growth well supported by our key Communications and Enterprises businesses. We had some marquee wins which align very well with our strategy of catering to the connected world.CP Gurnani, Managing Director & CEO, Tech Mahindra said in the press release
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