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Last Updated : Jan 31, 2020 04:03 PM IST | Source: Moneycontrol.com

Tech Mahindra Q3: 5% drop in net profit but better than estimates

The company reported a net profit of Rs 1,202.9 crore in the corresponding quarter of the previous financial year and Rs 1,123.9 crore in Q2FY20.

 
 
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IT player Tech Mahindra  on January 31 reported a 4.73 year-on-year (YoY) drop in its December quarter net profit at Rs 1,145.9 crore.

Despite the fall, the number was better than expected. A CNBC-TV18 poll had estimated Rs 1,000-crore profit.

On a quarter-on-quarter basis, the numbers were 2 percent up.

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“We have witnessed substantial operational and financial metrics improvement with healthy cash flow generation this quarter. We continue to invest in emerging technologies and streamline delivery as we ready ourselves for the next phase of growth," said Manoj Bhat, Chief Financial Officer, Tech Mahindra.

The company's EBITDA for the quarter stood at Rs 1,563.3 crore, down 9.25 percent YoY from Rs 1,722.6 crore reported in Q3FY19. However, EBITDA was up 4.2 percent QoQ but margins at 16.2 percent were down 30 bps QoQ.

Revenue, on the other hand, climbed nearly 8 percent YoY to Rs 9,654.6 crore in Q3FY20 against Rs 8,943.7 crore in Q3FY19.

The company's earnings per share (EPS) was at Rs 13.13 against Rs 13.55 YoY and Rs 12.88 QoQ.

The company's headcount fell by 683 QoQ to 1,30,839 during the quarter.

“This is a quarter of strong growth across our communications and enterprise businesses. We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 56, which continues to be a key focus area in the year ahead,” said CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra.

Tech Mahindra announced acquisition of a 70 percent stake in Bangalore-headquartered Cerium Systems. Cerium will boost the company’s Engineering Services practice in VLSi (Very Large Scale Integration) and Embedded Software, the company said.

 

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First Published on Jan 31, 2020 04:03 pm
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