Tech Mahindra Q1 profit up 27 percent on manufacturing boost

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).

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.