Tech Mahindra Q2 gets boost from Satyam merger

Tech Mahindra Q2 gets boost from Satyam merger

Summary: The Indian IT services company books a 58 percent jump in net profit at 7.18 billion rupees (US$11 million), in line with growth by the rest of the industry.

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TOPICS: Outsourcing, India
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Tech Mahindra saw strong traction in U.S. and Europe which helped lift its second quarter earnings, reflecting the growth seen by the rest of the industry. It was also lifted by its recent merger with Mahindra Satyam.

For the three months ended September, consolidated net profit was up 58 percent jump in net profit at 7.18 billion rupees (US$11 million), helped by broadbased growth. Consolidated revenue grew 35.4 percent to 47.7 billion rupees (US$752 million), according to its statement

Operating profitability before accounting for depreciation also improved with lower costs. Margins rose 220 basis points to 23.2 percent from the previous quarter.

Tech Mahindra has been gradually reducing its dependence on its largest client BT over the past few quarters, noted the Economic Times. It added the successful integration of Satyam's relatively more diversified services portfolio has helped it hold a healthier balance sheet. Consolidated debt more than halved from the previous quarter to 3.3 billion rupees (US$52.5 million).

"The Digital World is the next phase of our growth and we are ready to ride that wave. I am confident of our alignment with the needs of next generation consumers, with industry best practices and core strengths that our solutions bring," said Vineet Nayyar, executive vice chairman of Tech Mahindra.

In June, Tech Mahindra finalized its merger with Satyam, to become India's fifth largest IT services provider.

 

 

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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