Tech Mahindra Q1 net halves to Rs 132.6 Cr

MUMBAI, INDIA: Indian IT firm Tech Mahindra, which acquired a controlling stake in scam-hit Satyam Computers (now Mahindra Satyam) recently, posted net profit of Rs 131.62 crore, a decline of nearly 50 per cent compared to the year-ago quarter and a 43 per cent decline Q-o-Q. The dip in profit is due to interest costs it paid on borrowings to fund its acquisition of Mahindra Satyam.

Tech Mahindra had a net profit of Rs 258.52 crore in the June quarter of last fiscal, while, for the March 2009 the profit stood at Rs 230.4 crore.

The total revenue fell to Rs 1,113.0 crore for Q1 FY 10 as against the quarterly revenue of Rs 1116 crore for the year-ago quarter. However, this shows an increase of 5.9 per cent over the previous quarter revenue of Rs 1,051.3 crore.

“This has been a momentous quarter which has redefined Tech Mahindra’s positioning in the marketplace. Not only has our leadership position in telecom been reinforced, but our presence has expanded across other industry verticals as well,” said Anand Mahindra, Chairman, Tech Mahindra.

The company has a debt of Rs. 2,380.2 crore as of June 30, 2009, it said in a statement. The total interest cost for the quarter is Rs. 57.1 crore as against Rs 2.3 crore in the previous quarter.

"This has been a momentous quarter which has redefined Tech Mahindra's positioning in the market place. Not only has our leadership position in telecom been reinforced, but our presence has expanded across other industry verticals as well," said Tech Mahindra's vice chairman Vineet Nayyar.

Tech Mahindra now holds 42.70 per cent shares in Mahindra Satyam through its subsidiary Venturbay Consultants Private Limited. The reported consolidated numbers do not include Mahindra Satyam financials as those are being prepared for restatement.

Tech Mahindra's consolidated headcount increased by 510 employees to 25,482 at the end of June from 24,972 in March 2009 to 25,482 in June 2009.