Q3 Results: Tech Mahindra’s Profit Rises On Enterprise And Communications Business

Tech Mahindra Ltd.’s quarterly profit rose led by its communications and enterprise businesses.

Net profit increased 14.3 percent sequentially to Rs 1,207 crore in the quarter ended December, according to its stock exchange filing. Analysts tracked by Bloomberg had expected profit at Rs 1,098 crore.

• Revenue rose 3.6 percent to Rs 8,943 crore.
• Operating profit rose 8.6 percent to Rs 1,439 crore.
• EBIT margin expanded 70 basis points to 16.1 percent.

“The current quarter has been impressive on all fronts, delivering steady growth in enterprise and communications business along with margin expansion,” CP Gurnani, managing director and chief executive officer at the company, said in a media statement. “We are confident of continuing the growth momentum.”

The company added one client in the $50 million-plus bracket; one in the $20 million-plus bracket; two in the $10 million-plus bracket and 9 in the $1 million-plus bracket.

• Its active client count stood at 935 during the quarter.
• The company has a free cash flow of $160.3 million.
• Its total employee headcount rose by 3,451 to 1.218 lakh.

Shares of Tech Mahindra closed 1.3 percent ahead of the results announcements, compared with a flat Nifty 50 Index.