India?s sixth largest software exporter Tech Mahindra has posted better-than-expected figures for the quarter ended June, with net profit rising 22% from a year ago on the back of a weak rupee and better cost management. The company?s net profit stood at R338 crore against R277 crore in the same period a year ago.
Tech Mahindra?s revenues during the reported quarter increased 19.4% to R1,543 crore from R1,292 crore in the year-ago period. The company?s operating profit margins for the June quarter improved by 440 basis points sequentially to 21.4% from the earlier 17%. ?We saw a 300 basis points improvement in margins on back of rupee depreciation and the rest was because of cost optimisation measures,? said Vineet Nayyar, vice-chairman, MD and CEO, Tech Mahindra.
The cash and cash equivalent stood at R280 crore as on balance sheet of June 30, 2012. The company continues to see growth in the non-British Telecom client segment. BT contributes 36% to the company?s revenues. The firm has added six new clients during the quarter and seen maximum traction in the managed services business.
The company?s debt currently stands at R886 crore as on June 30. Tech Mahindra has hedged $901 million at the rate of R52 per US dollar and ?260 at 1.52 per US dollar up to five years. The company posted a forex loss of $3.5 million during the quarter.
The company currently is in the process of internally discussing wage hikes for fiscal 2013.
