Tech Mahindra Q3 profit triples to $161M

The Indian IT services firm saw a jump in earnings thanks to one-time gains and on the back of growth in telecom, financial and manufacturing sectors.

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Tech Mahindra has posted a three-fold jump in its consolidated third quarter net profit, partly due to one-off gains and on growth in telecom, financial and manufacturing sectors. 

“With the western economy headed in the right direction, we are headed forward with the right momentum. We are seeing blossoming of green shoots," said executive vice-chairman Vineet Nayyar, according to The Hindu.

For the three months ended December, the IT firm posted a profit of 10 billion rupees (US$161.6 million), compared with 3.21 billion rupees in the same period the previous year, according to its statement. This was on the back of consolidated revenue which rose 33.5 per cent to 48.9 billion rupees.

"We believe that the western economy is on an upward trajectory, even if growth levels are still not what they used to be," added Nayyar.

The Indian IT firm played down any major threat from the recently passed Immigration Bill in the U.S. which tightened restrictions on foreign workers.  The bill, among other measures, limits the number of temporary,  foreign worker visas  that a company can hold.

However, there are doubts over any form of legislation materializing in 2014 amid signs of a deadlock in the U.S. House, despite the bill's passing by the Senate last year.

"From our point of view, the Immigration Bill seems to have watered down in the lower house. We believe that our stakeholders and client are well aware of the situation, and we do not see any immediate impact on the business," a company spokesperson told The Hindu.