Tech Mahindra Q1 profit up 27 percent on manufacturing boost

Tech Mahindra Q1 profit up 27 percent on manufacturing boost

Summary: In first quarterly results since its merger with Mahindra Satyam in June, the Indian outsourcing company saw broad-based growth led by sectors like manufacturing, and media and entertainment.

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TOPICS: Outsourcing, India
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Software services firm Tech Mahindra has booked a 27 percent on-year jump in first quarter net profit at 6.86 billion rupees (US$111.79 million) on the back of broad-based growth. Revenue was 21.7 percent higher at 41 billion rupees (US$670.5 million).

tech-mahindra-q1-profit-up-27-percent-on-manufacturing-boost

According to a press release on Tuesday, growth was led by its second largest vertical manufacturing, which expanded 5.7 percent quarter on quarter. Media and entertainment grew 8.7 percent, while retail increased by over 6 percent.

In June, Tech Mahindra had formally merged with Mahindra Satyam to form India's fifth largest software services firm.

"We have completed one of the largest mergers in Indian corporate space this quarter in a seamless fashion. Our robust performance reinforces our belief in the inherent strength and cross leveraging possibilities," Tech Mahindra executive vice chairman Vineet Nayyar, said in the statement.

Its results are in line with the strong quarter seen by the rest of the industry. For the same period, HCL Technologies booked a better than expected growth at 42 percent. The positive results echo those of rivals Tata Consultancy Services (TCS) which booked a 10 percent profit growth, and Wipro which posted an 11 percent profit growth for the same period. Wipro had remarked it was seeing a large pickup in large deal closures.

Topics: Outsourcing, India

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Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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