Tech Mahindra Ltd.'s profit fell in the quarter ended March, missing estimates, despite deal wins.
The information technology company saw its net profit drop 17% over the preceding quarter to Rs 1,081.4 crore in the January-March period, according to its exchange filing. That compares with the Rs 1,307.4-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue rose 1% sequentially to Rs 9,729.9 crore, against the Rs 9,831.8-crore forecast.
Other Highlights (quarter-on-quarter)
Revenue in dollar terms rose 1.6% to $1,329.6 million.
Constant-currency revenue growth stood at 0.7%.
Operating profit rose 1% to Rs 1,553 crore.
EBIT margin expanded to 16% from 15.9%.
Continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter, CP Gurnani, managing director and chief executive officer at Tech Mahindra, said in the filing. “We are witnessing a strong demand acceleration.”
The company has recommended a final dividend of Rs 30 apiece and a special dividend of Rs 15 apiece for FY21.
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Shares of Tech Mahindra closed 1.26% higher before the results were announced. The stock has declined 1.61% so far this year compared with NSE IT index's 5.01% gain.
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