Mumbai: Information technology services firm Tech Mahindra Ltd on Friday reported a 1.3% fall in quarterly profit, weighed down by interest costs on borrowings to fund its acquisition of Satyam Computer Services Ltd.
Satyam, re-branded as Mahindra Satyam, was bought by Tech Mahindra in April last year after being hit by India’s biggest corporate fraud.
Tech Mahindra, a unit of tractor and utility vehicle maker Mahindra and Mahindra Ltd, owns a majority stake in Satyam, which has not been merged with its new parent yet as its financials are being restated.
The company, a provider of information technology services to the telecom industry, said net profit in January-March fell to Rs227 crore from Rs230 crore a year ago. The company said interest costs in the March quarter stood at Rs31.1 crore, compared with Rs2.3 crore in the year-ago period. Revenue rose 12.6% to Rs1,13 crore.
Ahead of the announcement, its shares ended 0.7% higher at Rs773.60 on the Bombay Stock Exchange, on a day the benchmark Sensex rose 0.3% to close at 17,558.71 points.
BT Group Plc. owns a third in Tech Mahindra and is its largest customer. Tech Mahindra also counts US telecom firm AT&T Inc. and Etisalat’s India mobile telecom unit among its clients.