Mumbai: Tech Mahindra Ltd’s net profit for the December quarter remained nearly unchanged from a year ago, but dropped 7% from the preceding three months.
Consolidated net profit for India’s sixth largest software exporter fell marginally to Rs275.8 crore from Rs276 crore a year ago, but fell from Rs 296.3 crore in the July-September quarter.
Revenue, though, rose 24% year-on-year to Rs1,791.1 crore, and was 9.8% higher sequentially, helped by Tech Mahindra’s recent acquisitions of business process outsourcing company Hutchison Global Services Pvt. Ltd and value-added service provider Comviva Technologies Ltd.
Standalone net profit for Tech M, not including Mahindra Satyam, increased 67% from a year ago to Rs242 crore, and was 36% higher sequentially. Analysts had expected a standalone profit of Rs201 crore, according to IDFC Securities Research.
The shares ended Wednesday 1.08% higher at Rs979.10 on BSE, while the Sensex closed at 19,639.72 points, down 0.10%. The BSE IT index rose 0.62% to 6,381.64 points.
“Tech Mahindra has been consistently performing with key wins and partnerships, supplemented by non-organic initiatives,” executive vice-chairman Vineet Nayyar said in a statement.
Among other mid-cap information technology (IT) companies that recently reported third quarter results, Mindtree Ltd reported a 2.5% sequential and 6% year-on-year growth in revenue, while HCL Technologies Ltd’s revenue rose 3% sequentially and 19.6% year-on-year in rupee terms.
Consolidated net profit for Mahindra Satyam (the erstwhile Satyam Computer Services Ltd that Tech M bought in 2008) fell 74% year-on-year and 71% sequentially to Rs80 crore in the latest third quarter because of a one-time claim settlement with Aberdeen Asset Management Plc., UK for $68 million. Satyam shares gained 3.28% to close at Rs116.45 each on Wednesday.
Tech Mahindra and Mahindra Satyam’s merger of operations is waiting an approval from the Andhra Pradesh and Bombay high courts.