Tech Mahindra Q1 net up 7.6% QoQ, up FII investment limit

Moneycontrol Bureau

Tech Mahindra, one of the largest software services exporters, matched the forecast with the first quarter consolidated net profit rising higher-than-expected 7.6 percent sequentially to Rs 686 crore on higher forex gain.

Consolidated rupee revenue grew by 8.9 percent quarter-on-quarter to Rs 4,103 crore while dollar revenue increased 3.7 percent to USD 724 million, which both were slightly above the forecast.

Analysts on an average had expected it to report net profit of Rs 611 crore on revenues of Rs 4,058 crore for the quarter.

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Earnings before interest, tax, depreciation & amortisation (EBITDA) rose by 12.1 percent Q-o-Q to Rs 864 crore during the quarter.

Tech Mahindra reported other income of Rs 207.3 crore in first quarter, up 5.44 times over Rs 38.1 crore reported in previous quarter.

Other income included forex gain worth Rs 134 crore during the quarter as against loss of Rs 37.3 crore in March quarter.

The software services exporter increased foreign institutional investor (FII) investment limit to 45 percent from 35 percent.

At 15:14 hours IST, the stock gained one percent to Rs 1,256.40 on the BSE.