Tech Mahindra Q1 net profit up 12.4%

IT services firm Tech Mahindra on Monday reported 12.4% rise in consolidated net profit at Rs 897.9 crore for the first quarter ended June 2018.

The firm had registered a net profit of Rs 798.6 crore in the corresponding quarter of the last fiscal, Tech Mahindra said in a statement.

The consolidated revenue stood at Rs 8,276.3 crore in the quarter under review, up 12.8% from Rs 7,336.1 crore in the year-ago period, as per Indian Accounting Standards.

Earnings per share (EPS) was at Rs 10.12 for the quarter ended June 30, 2018.

The company's net profit declined 26.5%, while revenue was up 2.8%, compared with the March 2018 quarter.

"The overall business growth trajectory for the FY19 is on track. While business seasonality has affected the current quarter, our 'run-change-grow' strategy with strong focus on digital transformation is keeping the business buoyant," Tech Mahindra Managing Director and CEO C P Gurnani said.

The changing demand landscape for next generation technologies is going to fuel the digital business further, he added.

Gurnani said Tech Mahindra Vice Chairman Vineet Nayyar has decided to retire. Also, the company has appointed Harshvendra Soin as the firm's Chief People Officer.

In dollar terms, Tech Mahindra's profit grew 6.5% to $131.8 million in the June 2018 quarter, while revenue was up 7.5% to $1.22 billion from the year-ago period.

The company added 13 active clients compared to the trailing March quarter, taking the active client count to 926 at the end of June 2018.

Its total headcount was at 1,13,552 people, including 72,462 (software) and 34,700 (BPO).

"We will continue to focus on our journey of margin improvement in FY19; while the global macros, including currency, continue to be volatile, we are working with a multi-pronged approach of enhancing operational efficiencies, embracing new-age delivery, re-skilling and increasing value per employee," Tech Mahindra CFO Manoj Bhat said.