Tech Mahindra’s quarterly profit dips 23% to Rs 472 cr
IT services firm Tech Mahindra has posted a 23 per cent decline in its net profit to Rs 472 crore for the quarter ended March 31, impacted by cross currency headwinds and salary hikes. The company had posted a net profit of Rs 614.21 crore in the corresponding quarter last fiscal.
The company’s revenues, however, grew 20.9 per cent to Rs 6,116.79 crore in the reported quarter from Rs 5,058.11 crore in the January-March quarter of 2014. “We have seen one of the highest growth rates this year. Our Q4 results were impacted by macroeconomic factors like <g data-gr-id="26">cross currency</g> headwinds and salary increases. We will <g data-gr-id="27">endeavour</g> to work on improving our operating metrics to achieve synergy with our recent acquisitions,” Tech Mahindra Executive Vice Chairman Vineet Nayyar said.
In dollar terms, revenues of the Mumbai-based firm stood at $984 million, up 19.3 per cent year-on-year, with $100 million being contributed by LCC and SOFGEN (acquisitions this fiscal). For the full fiscal, the net profit fell to Rs 2,627.67 <g data-gr-id="24">crore,</g> while revenue was higher by 20.1 per cent at Rs 22,621.27 crore.
In dollar terms, the net profit stood at $427 <g data-gr-id="23">million,</g> while revenue increased 19 <g data-gr-id="25">per cent</g> to $3.68 billion. The Board of Directors have proposed a dividend of Rs 6 per share (120 per cent) for FY14-15. Tech Mahindra’s total headcount stood at 1,03,281 at the end of March, with the addition of 13,840 professionals during the year.
The software headcount stood at 72,952, BPO was at 22,693 and support staff at 7,636. “Our growth journey continues with entry into new technology and business areas. The focus will be on <g data-gr-id="28">productisation</g> for non-linear growth and to maximum value from our well entrenched customer relationships,” Tech Mahindra Managing Director and CEO C P Gurnani said.
The company had a debt at Rs 700 crore as of March 31, while cash and cash equivalent stood at Rs 3,212 crore.