Tech Mahindra's Q3 net profit up 14%
Tech Mahindra's consolidated net profit for the third quarter ended December 31, 2016 rose 14%, at Rs 855.98 crore as against the same period of last year.
Analysts at Kotak estimated Tech Mahindra's net profit at Rs 728.4 crore down by 4.1% yoy and revenue at Rs 7,421.5 crore up by 10.8%.
Vineet Nayyar, Vice Chairman of Tech Mahindra said, “The strong deal wins and business momentum during the quarter reaffirm that we are on the right track to capitalize on the opportunities from the global digital transformation and see measurable benefits from that."
Consolidated total income from operations was at Rs 7557.50 crore, increasing by 12.77% year-on-year (YoY) and 5.44% quarter-on-quarter (QoQ) basis.
This quarter, operating profit (EBITDA) was at Rs 1,187 crore and margins expanded by 80 basis points qoq at 15.7%.
On standalone front, Tech Mahindra reported 36.64% yoy rise in net profit at Rs 851.89 crore and that of total income stood at Rs 5912.86 crore growth of 13.12% yoy.
CP Gurnani, Managing Director & Chief Executive Officer of Tech Mahindra said, “Our differentiated offering focused on the five pillars of our DAVID strategy – Digitalization, Automation, Verticalization, Innovation and Disruption, position us as a strong partner of choice for global businesses.”
In Q2,Tech Mahindra reported net of Rs 643 crore, a decline of 19.3% compared to Rs 796.5 crore witnessed in the similar period of the previous year.
Q2 was impacted by 120 basis point by one-off restructuring costs. Headwinds for the quarter were - (1) seasonal furloughs and (2) transition costs in large deals in the enterprise segment.
Share price of Tech Mahindra closed at Rs 471.70 per share on BSE, above Rs 4.95 or 1.06%.