Tech Mahindra Q1 revenue up 4%, profit up 7%

Indian IT services firm Tech Mahindra, a subsidiary of automobile major Mahindra Group, reported a 4% rise in revenue and a 7% rise in net profit for the quarter ended June, according to a filing with the Bombay Stock Exchange.

The company reported a revenue of Rs 8,653 crore for the first quarter ended June 30, 2019 compared to Rs 8,276.3 crore for the corresponding period last year, an increase of 4.55%.

On a sequential basis, the company reported a decline of 2.69% in revenue from Rs 8,892.3 crore reported for the quarter ended March 2019. 

The company reported a net profit of Rs 959 crore for the first quarter as against Rs 897.9 crore for the corresponding period last year, an increase of 6.8%. 

On a quarter-on-quarter basis, the company reported a decline of 15.32% in profit from Rs 1,132.5 crore reported for the quarter ended March 2019.

While IT operations contributed Rs 7,857.2 crore to the revenue, BPO operations contributed Rs 795.8 crore. Its digital revenue increased 37.4% year-on-year and is currently, at 36% of the revenue, the statement said.

“We are very encouraged to see TCV deal wins worth close to half a billion dollars across enterprise and communications,” CP Gurnani, managing director & CEO, Tech Mahindra, said. “We remain optimistic on the demand environment, evident from a very strong pipeline and deal conversions. Digital will continue to be a primary growth driver underscoring our collaborative approach through TechMNxt platform.” 

Manoj Bhat, chief financial officer, Tech Mahindra,  said the company will focus on automation and artificial intelligence (AI) for growth.

The total headcount of the company by the end of June this year stood at 125,773 up by 4,691 quarter-on-quarter.