Tech Mahindra Q3 Results: Profit Beats Highest Estimate On Deal Wins
Tech Mahindra Ltd.’s third-quarter profit beat estimates on higher deal wins.
Profit rose 2 percent sequentially to Rs 1,146 crore in the quarter ended December, according to the company’s exchange filing. Analysts tracked by Bloomberg had pegged profit at Rs 1,005 crore.
Revenue increased 6.4 percent to Rs 9,655 crore against the Rs 9,447-crore estimate. The growth was largely led by the communications vertical and came despite furloughs or leaves during the Christmas holiday season.
- Dollar revenue rose 7.3 percent to $1,353 million.
- Operating profit rose 8.4 percent to Rs 1,179 crore.
- Margin expanded to 12.2 percent from 12 percent.
WATCH | Tech Mahindra Management Reviews Q3 Performance.
The Mumbai-based software services firm won deals worth $1.23 billion in the quarter ended December. That came after it struck record deals worth $1.49 billion in the preceding three-month period, including a multi-year agreement with the U.S. telecom giant AT&T Inc. for network transformation and migrating to the cloud.
“This is a quarter of strong growth across our communications and enterprise businesses,” CP Gurnani, managing director and chief executive officer at Tech Mahindra, said in a statement. “We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 5G, which continues to be a key focus area in the year ahead.”
Shares of Tech Mahindra closed 1.1 percent higher compared with a 0.61 percent fall in the benchmark Nifty 50 index.