NEW DELHI :
IT services firm Tech Mahindra on Friday reported a 4.7 per cent decline in its consolidated net profit at 1,145.9 crore for the December 2019 quarter.

The Mumbai-based firm had registered a net profit (attributable to owners of the company) at 1,202.9 crore in the corresponding quarter of the last fiscal, Tech Mahindra said in a statement.

However, its revenue from operations grew 7.9 per cent to 9,654.6 crore in the quarter under review from 8,943.7 crore in the year-ago period, it added.

Earnings per share (EPS) was at 13.13. In dollar terms, the net profit was up 1.3 per cent sequentially to USD 160.6 million, while revenue grew 5.1 per cent to USD 1,353 million in the said quarter.

This is a quarter of strong growth across the company’s Communications and Enterprise businesses, Tech Mahindra Managing Director and CEO C P Gurnani said.

“We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 5G, which continues to be a key focus area in the year ahead,” he added.

The company’s total headcount was at 1,30,839 people, a reduction of 683 people from the September 2019 quarter.

The company witnessed substantial operational and financial metrics improvement with healthy cash flow generation this quarter, Manoj Bhat, chief financial officer at Tech Mahindra said.

“We continue to invest in emerging technologies and streamline delivery as we ready ourselves for the next phase of growth,” he added.

Tech Mahindra also announced the acquisition of 70 per cent stake in Bengaluru-headquartered Cerium Systems.

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“Cerium will boost the company’s Engineering Services practice in VLSI (very large scale integration) and Embedded Software.

“We continue to invest in niche digital assets complementing our service offerings. Cerium provides cutting edge solutions with a strong foothold in global semiconductor industry,” Tech Mahindra Head of Corporate Development and Portfolio Companies Vivek Agarwal said.

Shares of Tech Mahindra closed marginally higher at 796.00 on the BSE on Friday.





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