IT major Tech Mahindra posted a sharp drop in fourth-quarter (January to March) net profit despite a strong revival in core business; the firm blames the hit on Mahindra Satyam's legal expenses. (Click here to know how the company faired during the quarter)
"If we exclude our top customer British Telecom, our revenues grew by 27% for the full year and 9% on sequential quarter basis. Our EBIDTA for the quarter was Rs 259 crore and PAT of Rs 206 crore. However, when we merge the Satyam results then it ends up in a loss basically because it reflects the one-time payment which was made for setting the class section lawsuit," vice chairman Vineet Nayyar said.
"The numbers were better than expected but were hit due to the Satyam loss. Also, discretionary spend went down in the IT sector this year, thus pulling down PAT," he added.
Watch the management's address to the press in the accompanying videos.