Executive Vice-Chairman Vineet Nayyar attributed the performance to growth in the company’s telecom, manufacturing and BFSI sectors.

IT firm Tech Mahindra, on Tuesday, reported a substantial jump in third quarter net profit, partially boosted by one-time gains and a tax write-back.

Executive Vice-Chairman Vineet Nayyar attributed the performance to growth in the company’s telecom, manufacturing and BFSI sectors.

“With the western economy headed in the right direction, we are headed forward with the right momentum. We are seeing blossoming of green shoots,” Mr. Nayyar said, while addressing reporters at the company’s campus near here. The company more than tripled its consolidated net profit to Rs. 1,010 crore for the third quarter ended December 31, 2013, as against Rs. 321 crore for the same quarter last year. This increase in net profit includes an exceptional item, without which the net profit is around Rs. 663 crore, according to Mr. Nayyar.

According to a press release, consolidated revenue increased by 33.5 per cent to Rs. 4,898 crore (Rs. 3,669 crore). “We believe that the western economy is on an upward trajectory, even if growth levels are still not what they used to be,” he said.

Tech Mahindra is also turning its eyes towards Africa, in particular, South Africa, which has large potential. For the company, Americas contributed 47 per cent of the total revenue while Europe's contribution was 31 per cent, during the third quarter.

The company ended the third quarter with a total employee strength of 87,399, a net addition of 2,165 from the previous quarter. The company's board, which met for the first time here on the new campus, approved an increase in FII limit to 48 per cent from the present 45 per cent. Tech Mahindra also believes the U.S. House Immigration Bill, in stark contrast to the Senate Bill, is unlikely to pose a major threat.

“From our point of view, the Immigration Bill seems to have watered down in the lower house. We believe that our stakeholders and client are well aware of the situation, and we do not see any immediate impact on the business,” a company spokesperson said. According to C. P. Gurnani, Managing Director and CEO,

“Our results are a testimony to the fact that our strategy and investments are aligned with market drivers and demands. Our focus on connected solutions for digital enterprises will continue to drive this momentum.”

The company’s share closed at Rs. 1,775.20 on the National Stock Exchange.

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