Impacted by wage hike and currency fluctuations, Tech Mahindra Ltd., India’s fifth largest software services company, has reported a 23 per cent fall in the (consolidated) net profit at Rs.472 crore for the fourth quarter ended March 31, 2015, as compared to Rs.614 crore during the same period last year.
Revenue from services increased to Rs.6,117 crore from Rs.5,058 crore in the same period last year, up 21 per cent.
For the year ended March 31, 2015, the company’s consolidated net profit declined to Rs.2,627 crore from Rs.3,029 crore in the previous year, down 13 per cent. Revenue from services increased to Rs.22,621 crore from Rs.18,831 crore, up 20 per cent. Commenting on the result Vineet Nayyar, Executive Vice Chairman, Tech Mahindra said, “Our fourth quarter results were impacted by microeconomic factors like cross currency headwinds and salary increases. We will endeavour to work on improving our operating metrics to achieve synergy with our recent acquisitions.”
During the year the company added 13,840 professionals and the headcount had reached a figure of 1.03 lakh people. As on March 31, 2015, the company’s debt was at Rs.700 crore. Its cash and cash equivalent was at Rs.3,212 crore. It had 767 active clients ( 629). “It has been a successful year over all where we increased our market presence significantly. Our growth journey continues with entry into new technology and business areas. The focus will be on productisation for non-linear growth and to maximum value from our customer relationships,” said CP. Gurnani, Managing Director & CEO, Tech Mahindra.
The board recommended dividend of Rs.6 per equity share for the year ended March 31, 2015, subject to approval.
