Tech Mahindra Q3 Profit Rises 14% To Rs 856 Crore

New Delhi: Tech Mahindra on Monday posted an about 14 per cent jump in consolidated net profit at Rs 856 crore for the third quarter of fiscal year 2016-17.

The IT company had reported a net profit of Rs 751.3 crore for the corresponding three-month period of the previous fiscal year (2015-16).

Income from operations (net) increased 12.7 per cent to Rs 7,557.5 crore in the reported quarter, compared with Rs 6,701.1 crore in the year-ago period, the company said in a filing to the BSE.

"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," Tech Mahindra vice chairman Vineet Nayyar said.

In dollar terms, Tech Mahindra's net profit was up 11.4 per cent at $126.3 million, while revenue was up 10 per cent at $1,116.1 million in the said quarter.

In constant currency terms, the revenue growth was at 12 per cent year-on-year and 5.4 per cent sequentially.

Its IT revenue during the said quarter stood at Rs 7,031.16 crore, while that from BPO was at Rs 526.31 crore.

Americas accounted for 46.7 per cent of its revenues, while Europe and the Rest of the World accounted for 29.4 per cent and 23.9 per cent, respectively.

Its total headcount was at 1,17,095 at the end of December 2016 quarter with 80,858 software professionals. It added 4,209 professionals in the said quarter. Attrition (on last 12 month basis) was at 18 per cent.

Cash and cash equivalents stood at Rs 4,951 crore with addition of cash of Rs 950 crore during the quarter.

Its active client count stood at 837 in the third quarter and added 12 active clients quarter-on-quarter.

The company has announced that Jayararnan G, its company secretary and chief compliance officer, will retire at the close of business hours on March 31, 2017.

It added that Anil Khatri will succeed him with effect from April 1, 2017.

Shares in Tech Mahindra ended 1.06 per cent higher at Rs 471.70 apiece on the BSE, whose benchmark Sensex index finished down 0.12 per cent.