Tech Mahindra Ltd.’s profit beat analyst estimates in the March-ended quarter on the back of a deferred tax gain.
Net profit of the software services major rose 29.6 percent from the previous quarter to Rs 1,222 crore, said the company in a stock exchange filing today. That’s much higher than the Bloomberg consensus estimate of Rs 931 crore. The bottom line was aided by a deferred tax gain of Rs 69.1 crore during the quarter.
Revenue rose 3.6 percent sequentially to Rs 8,054.5 crore, also higher than estimated. Revenue in dollar terms rose 2.9 percent from the last quarter to $1,244.3 million, the company added in its press release accompanying the earnings filing.
“Continued focus on operational metrics has led to improved performance through the year and the growth in digital areas is particularly encouraging,” Managing Director CP Gurnani said in the release. On the operational front, earnings before interest and tax rose 12.4 percent to Rs 1,113.2 crore quarter-on-quarter while operating margin expanded 110 basis points to 13.8 percent.
The stock slumped 1.2 percent to Rs 703 apiece ahead of the earnings announcement. The stock has risen 26.71 percent during the January-March period, compared to a 4 percent decline in the country’s benchmark Nifty 50 index.