New Delhi: An upfront payment of Rs440 crore to a British customer on promised savings for a yet to be signed contract has made Tech Mahindra Ltd, India’s sixth largest software exporter, post a fourth quarter (Q4) loss of Rs221 crore on revenues of Rs1,021.8 crore. It has paid the money to the British firm, whose name it did not disclose, on expected savings of a large outsourcing contract likely to be signed by June.
“It is exclusive (for us),” said C.P. Gurnani, president, Tech Mahindra.
Tech Mahindra won a $350 million, five-year deal from British Telecom Plc. to handle large parts of application support and maintenance function of its IT estate during the quarter.
A 16-fold rise in other income helped the firm post a Rs329.9 crore consolidated net profit on revenues of Rs3,766 crore for FY08 against a net of Rs121.5 crore on revenues of Rs2,929 crore the previous year.
Max India posts 81% rise in revenues
New Delhi: Max India Ltd, which has interests in health care and insurance, posted consolidated revenues of Rs3,611 crore for the year ended March, a jump of 81% from Rs1,994 crore last year, due to higher insurance policy sales.
The group’s consolidated net loss has shrunk by 1.8% to Rs48.9 crore this year, down from Rs49.7 crore in 2006-07.
A Max spokesman said losses mount in the books in life insurance business because increased policy sales mean “a larger reserve for policy holders liability, which has to be provided under the law” and a larger component of agents’ commission, which has to be written off in that year’s accounts. “However, the cash generated from operations has increased from Rs661 crore last year to Rs1,400 crore this year,” the spokesperson added. Gross premium income for 2007-08 grew 81% to Rs2,715 crore, while premiums from new policies was Rs1,676 crore, a rise of 73%. Bhuma Shrivastava