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Tech Mahindra profit dips 23% as currency headwinds, hikes bite

26 May, 2015 6:45 PM
15 0

The country’s fifth-largest IT services exporter, Tech Mahindra, on Tuesday reported a 23% year-on-year (y-o-y) decline in net profit to Rs 472 crore for the March quarter, primarily due to cross-currency headwinds and wage hikes.

The Pune-headquartered company, however, saw revenues grow 20.9% to Rs 6,116.79 crore from Rs 5,058.11 crore in the same quarter previous year.

“We have seen one of the highest growth rates this year. Our Q4 results were impacted by macroeconomic factors like cross-currency headwinds and salary increases. We will endeavour to work on improving our operating metrics to achieve synergy with our recent acquisitions,” Tech Mahindra’s executive vice-chairman Vineet Nayyar said in a statement.

In dollar terms, revenues increased 19.3% year-on-year to $984 million. The company’s recent acquisitions, LCC and SOFGEN, contributed about $100 million to revenues.

For the full fiscal, net profit fell to Rs 2,627.70 crore from Rs 3,028.8 crore previous year. Revenues, however, rose 20.1 % to Rs 22,621.27 crore.

In dollar terms, net profit stood at $427 million while revenues increased 19% to $3.68 billion.

Source: financialexpress.com

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