Tech Mahindra, the country's fifth-largest IT company by market capitalisation, on January 29 reported better-than-expected earnings for the December quarter, with profit rising 23 percent sequentially to Rs 1,309.8 crore led by operating income.
Revenue from operations in Q3FY21 grew by 2.9 percent quarter-on-quarter to Rs 9,647.1 crore and dollar revenue at $1,308.7 million increased by 3.4 percent compared to the previous quarter.
"Our focus on operational excellence has again yielded results as we structurally change our delivery model. We are seeing consistent improvement in our operating metrics and we are confident of continuing on this transformation journey in the coming quarters," Chief Financial Officer Manoj Bhat said.
The numbers were ahead of analysts' estimates. A CNBC-TV18 poll pegged the profit at Rs 1,166 crore on revenue of Rs 9,590 crore and dollar revenue was expected at $1,297.5 million.
At the operating level, earnings before interest and tax (EBIT) grew by 15.5 percent sequentially to Rs 1,537.1 crore and margin expanded by 170 bps QoQ to 15.9 percent for the December quarter, which was again better than CNBC-TV18 estimates of Rs 1,390 crore and 14.5 percent, respectively.
The communications segment registered a 3.6 percent sequential growth and enterprise business grew by 2.3 percent in constant currency.Tech Mahindra said the headcount at 1,21,901 declined by 2,357 in Q3 compared to the previous quarter.