Tech Mahindra reports 27percent rise in Net Profit
IT major Tech Mahindra posted 27% rise in consolidated net profit for first quarter. The company reported net profit of Rs 686 crore for quarter ending June 2013 for the combined entity of Tech Mahindra and Mahindra Satyam. Both companies completed the merger in July 2013.
The company reported revenue jump of 21.7 per cent at Rs 4103 crore compared to Rs 3372 crore. The stock closed at Rs 1266 on NSE after touching 52-week high of Rs 1292 during the afternoon session. Many technical experts have recommended the stock as a strong buy.
Mahindra Satyam's merger with Tech Mahindra has created the fifth largest technology company in India in terms of market capital. The combined entity is having a larger client base. Tech Mahindra was suffering pressure on its profitability after the business from British Telecom suffered. With addition of new clients, the company is looking forward to better quarters in future. The number of clients for the quarter ending June 2013 jumped to 567 from 516 for the quarter ending June 2012.
In US dollar terms, the company has registered 17.7 per cent increase in revenue and 22.3 per cent increase in net profit. The net profit for June quarter stood at USD 121 million. The company is in a strong position and the headcount at the end of June quarter stood at 83,063 with 53,337 professionals working in software development segment and 23,269 professionals working for BPO arm.