Tech Mahindra Q2 revenue grows by 15 per cent, to Rs 5,487 crore

Tech Mahindra, the country's fifth largest software services firm, on Wednesday posted a marginal rise in net profit at Rs 719.7 crore for the quarter ended September 2014 on the back of growth in manufacturing and telecom verticals.

The Mumbai-based IT services provider's net profit stood at Rs 718.4 crore in the corresponding quarter of the previous 2013-14 fiscal.

Tech Mahindra's revenue grew 15 per cent to Rs 5,487.9 crore in the quarter under review, from Rs 4,771.5 crore in the comparable period of FY14.

In dollar terms, the net profit stood at US $118 million and revenues were US $900 million in the quarter under review.

"Robust growth in key verticals this quarter underpins our belief in our strategy of continuous investment in capabilities," Tech Mahindra Executive Vice Chairman Vineet Nayyar said.

Tech Mahindra's active client count stood at 649 in the second quarter compared to 632 in Q1. The company added 2,580 professionals during the quarter to take the total headcount to 95,309. Of these, 66,175 people were with the software business, while 22,433 were in BPO operations. The company's cash and cash equivalent stood at Rs 3,434 crore as of September 30, 2014.

"We are seeing an increasing interest in digital enablement in our customer base, and our unique combination of capabilities in both the Communications domain and the Enterprise domain positions us well in the marketplace," Tech Mahindra MD and CEO CP Gurnani said.

The Q2 performance is a reflection of Tech Mahindra's strength in both these areas, he added.

The software services major announce its results after market hours. Tech Mahindra's shares closed at Rs 2,396.50 per scrip, up 1.16 per cent from previous close on the Bombay Stock Exchange (BSE).

"With a quarter-on-quarter revenue growth of 7.2 per cent, their growth has been up to industry standards. Tech Mahindra has shown a strong increase in their IT revenue with 6 per cent owing to their significant multi million, multi-euro deal with Ahlstrom," Greyhound Research CEO Sanchit Vir Gogia said.