Tech Mahindra's income from operations increased about 10 per cent to Rs 6,920.93 crore.
Mumbai: Software exporter Tech Mahindra on Monday reported a 28 per cent year-on-year growth in net profit at Rs 796 crore for the June quarter, buoyed by a surge in revenues.
"We have had a steady quarter in spite of seasonal weakness in our mobility business. We look forward to continuing our journey of improving profitability of our business," vice chairman Vineet Nayyar said.
The company had posted a profit of Rs 880.6 crore in January-March.
Mr Nayyar added that quarter-on-quarter performance was affected largely by a dip in margins, which slipped to 14.9 per cent as against 17 per cent in the March quarter on an increase in visa costs and seasonal downturn in some clients.
Chief financial officer Milind Kulkarni said the company incurred a cost of $11 million on H-1B visas while there was a hit of 1.80 per cent because of the seasonal downturn with select clients of Comviva.
Its consolidated revenues grew to Rs 6,920.9 crore, from Rs 6,293.8 crore in the year-ago period.
Terming the UK's vote to exit the European Union as the "biggest destabilising factor", Mr Nayyar said it will take at least one year for the uncertainties to settle down.
He added that the US election verdict can also be "potentially disruptive".
Mr Nayyar hoped that the company's "critical services" will not be affected.
MD and CEO C P Gurnani said Britain accounts for 10 per cent of the company's revenues and the spill-overs in an inter-connected world are something the company needs to keep in mind.
Mr Gurnani said the delivery on one deal lifted the share of digital revenues to above 20 per cent, from 11 per cent in the year-ago period, and is optimistic that this will be maintained.
Interestingly, he said Indian customers are featuring among some of the digital deal wins.
He saw banking and finance and healthcare verticals as the engines of growth at present and added that the enterprise vertical as a whole will grow at 12 per cent this fiscal year.
Its utilization rate moved up to 78 per cent from 74 per cent a year ago and the 77 per cent in the preceding March quarter.
It added 1,784 employees during the quarter to take its total strength to 1.07 lakh, but the attrition too remained sticky at 21 per cent.
Shares in Tech Mahindra, on Monday, ended 0.62 per cent higher at Rs 489.70 apiece on the BSE, whose benchmark Sensex index finished down 0.17 per cent.
"We have had a steady quarter in spite of seasonal weakness in our mobility business. We look forward to continuing our journey of improving profitability of our business," vice chairman Vineet Nayyar said.
The company had posted a profit of Rs 880.6 crore in January-March.
Mr Nayyar added that quarter-on-quarter performance was affected largely by a dip in margins, which slipped to 14.9 per cent as against 17 per cent in the March quarter on an increase in visa costs and seasonal downturn in some clients.
Chief financial officer Milind Kulkarni said the company incurred a cost of $11 million on H-1B visas while there was a hit of 1.80 per cent because of the seasonal downturn with select clients of Comviva.
Its consolidated revenues grew to Rs 6,920.9 crore, from Rs 6,293.8 crore in the year-ago period.
Terming the UK's vote to exit the European Union as the "biggest destabilising factor", Mr Nayyar said it will take at least one year for the uncertainties to settle down.
He added that the US election verdict can also be "potentially disruptive".
Mr Nayyar hoped that the company's "critical services" will not be affected.
MD and CEO C P Gurnani said Britain accounts for 10 per cent of the company's revenues and the spill-overs in an inter-connected world are something the company needs to keep in mind.
Mr Gurnani said the delivery on one deal lifted the share of digital revenues to above 20 per cent, from 11 per cent in the year-ago period, and is optimistic that this will be maintained.
Interestingly, he said Indian customers are featuring among some of the digital deal wins.
He saw banking and finance and healthcare verticals as the engines of growth at present and added that the enterprise vertical as a whole will grow at 12 per cent this fiscal year.
Its utilization rate moved up to 78 per cent from 74 per cent a year ago and the 77 per cent in the preceding March quarter.
It added 1,784 employees during the quarter to take its total strength to 1.07 lakh, but the attrition too remained sticky at 21 per cent.
Shares in Tech Mahindra, on Monday, ended 0.62 per cent higher at Rs 489.70 apiece on the BSE, whose benchmark Sensex index finished down 0.17 per cent.
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