Tech Mahindra third quarter FY2015 net profit up 12% to Rs 805 Crore

Tech Mahindra a specialist in digital transformation, consulting and business re-engineering has announced its third quarter result on 30th January 2015. Revenue for the company has gone up by 14% QoQ and 17.4% YoY to Rs 5752 Crore.

Tech Mahindras ‘s Net profit for October-December quarter FY 2015 is at Rs 805 Crore compared to Rs 719 crore of last quarter and Rs 614 crore a year ago.

tech mahindra

Rs 805 crores have a special adjustment profit of Rs 28.5 Crore earned by Mahindra Engineering Services from 1st April to September 2014. Before adjustment, Profit after tax for the company is at Rs 776 Crore compare to Rs 719.7 crore of second quarter FY 2015.

Tech Mahindra Consolidated revenue from service has gone up from Rs 5487.9 Crores of Q2 FY 2015 to Rs 5751.7 Corers of Q3 FY 2015. During the same third quarter last year company had revenue of Rs 5058 Crores.

Operating profit which is derived after taking out cost of services and SG&A expenses from total revenue of services is at Rs 1136 Crore for quarter ending 31st December 2014 as against Rs 1097.3 Crore last quarter FY 2015    .

Tech Mahindra total head count at the end of December 2014 is at 98009 after addition of 2700 professionals during October-December Quarter. Out of total 98009, Tech Mahindra has 67592 software professionals, 23566 BPO professionals and 6851 sales and support staffs.

The company as also added 25 new clients during October-December quarter FY 2015. With this total active client count for the company by the end of this third quarter FY 2015 is 674.

Company’s attrition ration has also gone up by 1% compare to last quarter of FY 2015.

Company’s board of directors have approved the proposal to issue 1:1 bonus shares and sub division (stock split) of its equity shares in the ration of 2:1. This means Tech Mahindra ’s shareholders will get two equity shares of Rs 5 each fully paid up for every one equity shares of Rs 10 each fully paid.

Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, said, despite seasonal weakness of the third quarter and currency volatility, Tech Mahindra turned in a fairly robust performance. Our continued focus on operational excellence is yielding tangible results for our stakeholders.

CP Gurnani, MD & CEO, Tech Mahindra, said, We believe our service portfolio coupled with the tuck-in acquisitions like MES have augmented our growth aspirations well, this quarter. We will make greater investments into Digital Transformation and ride the wave of opportunities that spot the business landscape Today.

Financial results of Tech Mahindra for Q3 FY 2015 – Rs in Crore

Particulars Q3 FY2015 Q2 FY2015 Q4 FY2014
Revenue 5751.7 5487.9 5058.1
Gross Profit 1986.1 1872.0 1811.1
Operating Profit 1160.1 1097.3 1071.8
Profit After Tax 776.8 719.7 614.2
Special Adjustment – Profit earned by MESL from April to September 2014 28.5
Net Profit After Special Adjustment 805.3 719.7 614.2

Tech Mahindra ’s Revenue by Geography – In Percentage

Geography Q3 FY2015 Q2 FY2015 Q4 FY2014
Americas 48.8 49.1 44.9
Europe 31.4 31.2 30.6
Rest of World 19.8 19.8 24.4

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