Moneycontrol
Last Updated : Jan 30, 2018 07:42 AM IST | Source: Moneycontrol.com

Tech Mahindra Q3 beats estimates, profit up 13% at Rs 943 cr; EBITDA margin expands 180 bps

Other income during the quarter fell 30 percent sequentially to Rs 225 crore due to lower forex gain that declined 55 percent QoQ at Rs 101.2 crore while tax cost was down nearly 10 percent at Rs 257.04 crore in Q3.

Software firm Tech Mahindra's third quarter (October-December) earnings beat analyst expectations on Monday as profit grew by 12.8 percent sequentially to Rs 943 crore despite lower other income. A CNBC-TV18 poll estimated a degrowth of 7 percent in bottomline QoQ.

The growth was driven by lower tax cost. Profit in September quarter stood at Rs 839.3 crore, it said.

Revenue from operations growth of 2.2 percent QoQ at Rs 7,776 crore during the quarter was ahead of CNBC-TV18 estimates of Rs 7,760 crore.

Topline in dollar terms grew by 2.5 percent sequentially to USD 1,209.1 million for the quarter, which too was ahead of expectations of USD 1,200 million.

"Our focus on digital transformation, continuous reskilling of our workforce to meet the future demands of our market space is showing encouraging results. The quarter results also demonstrate our focus on execution, which is key in an otherwise unpredictable macro business environment," Vineet Nayyar, Vice Chairman said.

Tech Mahindra said EBITDA (earnings before interest, tax, depreciation and amortisation) increased 14.4 percent quarter-on-quarter to Rs 1,264.6 crore and margin expanded 180 basis points to 16.3 percent for the quarter ended December 2017.

Other income during the quarter fell 30 percent sequentially to Rs 225 crore due to lower forex gain that declined 55 percent QoQ at Rs 101.2 crore while tax cost was down nearly 10 percent at Rs 257.04 crore in Q3.

C P Gurnani, CEO & MD, Tech Mahindra said commitment to ‘DAVID’ strategy (Digitisation, Automation, Verticalisation, Innovation, Disruption) has yielded marquee deals in the digital space.

He is confident the company will continue to deliver connected experience across markets and industries it serves.

IT Attrition (last twelve months) increased to 17 percent at December quarter, from 16 percent in September quarter while utilisation improved to 83 percent from 81 percent QoQ.

The software firm said active clients increased to 903 at the end of December quarter, from 885 in September quarter. It added 2 clients in USD 50 million band, 2 in USD 10 million and 7 clients in USD 5 million category.
First Published on Jan 29, 2018 03:49 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant