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Tech Mahindra's Q1 Net Profit Declines by 26% From The Previous Quarter

Olga Robert

Tech Mahindra Ltd.'s reported a 26 percent decline in its net profit for the first quarter of the financial year 2018-19 at Rs 897.8 crore from the previous quarter ended March 2018, in a stock exchange filing. On a year-on-year basis, there was an increase in profit after tax by 12.4 percent, compared to the same period in the previous year.

The company has reported a deferred tax gain of Rs 69.1 crore in the quarter under review.

Its revenue for the April-June 2018 quarter was up by 2.8 percent on a sequential basis and 12.8 percent on a YoY basis to Rs 8,276.3 crore. Tech Mahindra's dollar revenue dropped by 1.6 percent from the previous quarter to $1,224 million.

Earnings before interest and tax was 1.4 percent lower quarter-on-quarter to Rs 1,045 crore. EBIT margin contracted to 12.6 percent.

CP Gurnani, managing director (MD), and the chief executive officer (CEO) said the company's overall business growth trajectory for 2018-19 was on track, in a statement. "While business seasonality has affected the current quarter, our run change grow strategy with strong focus on digital transformation is keeping the business buoyant. The changing demand landscape for next-generation technologies is going to fuel the digital business." The company has added 13 active clients in the quarter under review.

Shares of Tech Mahindra were trading 2 percent higher at Rs 658 apiece ahead of the earnings.