Tech Mahindra Ltd, fifth largest IT firm of the country, announced its financial results for the quarter ended December 31, 2015 on February 1, 2016. The Q3 numbers were marginally in-line with estimates.
Tech Mahindra Ltd, fifth largest IT firm of the country, announced its financial results for the quarter ended December 31, 2015 on February 1, 2016. The Q3 numbers were marginally in-line with estimates.
Revenue Growth: The company's Q3 Net Profit slided down 3.4% to Rs. 759.2 crore vs Rs. 785.6 crore qoq. The revenue was registered at Rs 6,701 crore vs Rs 6,620 crore qoq while other income was reported at Rs. 63.9 crore vs Rs. 165.8 crore qoq. The top tech company posted consolidated EBIT Margin of 14.36%.
IIFL had estimated the company’s net profit for Q3 FY16 to plunge to Rs. 742.40 crore at a rate of 7.8% yoy and 5.5% qoq while net revenue to increase to Rs. 6,789 crore at 18% yoy and 2.6% qoq.
Global presence: The company registered a de-growth of 1.7% in US while Europe was flat in currency terms. However, RoW grew 6.7%, as a result the overall geographical growth was reported at 0.4%.
De-growth in communication business: Communication business dropped 1.4% due to furloughs, decline in top clients, volatility of currency and projects slow down. The slowdown was experienced with more than couple of clients. The company said that Chennai floods impacted the numbers marginally.
Telecom portfolio: The telecom portfolio continued to experience headwinds in third quarter of FY16. However the company said that the worst part of decline is over and telecom business is likely to get stable, if not grow, in coming quarters.
Clients and large deals: The active clients count went up by 13 to 800 in Q3. 1million+ clients went up by 28 to 326 while 20million+ client went by 1 qoq. The company said the acquisition of Pininfarina has been one of the major deals in Q3 and is likely to show good results in coming quarters. However, the company could not crack large deals as per the guidance given in Q2. Five of the large deals are said to be in process or waiting for approval.
New launches: Tech Mahindra launched electric two wheeler launched in US based on Internet of Things technology. The IT firm management said that the launch of connected scooter will set stage for the development of connected cars, Tom Tom deal and Pininfarina acquisition being the key factors in the development.
Future prospects: The company said it will focus on cost optimisation and DSO improvement. Moreover, it will work on margin improvement and continue to focus on productivity, business efficiency and automation.
Revenue Growth: The company's Q3 Net Profit slided down 3.4% to Rs. 759.2 crore vs Rs. 785.6 crore qoq. The revenue was registered at Rs 6,701 crore vs Rs 6,620 crore qoq while other income was reported at Rs. 63.9 crore vs Rs. 165.8 crore qoq. The top tech company posted consolidated EBIT Margin of 14.36%.
IIFL had estimated the company’s net profit for Q3 FY16 to plunge to Rs. 742.40 crore at a rate of 7.8% yoy and 5.5% qoq while net revenue to increase to Rs. 6,789 crore at 18% yoy and 2.6% qoq.
Global presence: The company registered a de-growth of 1.7% in US while Europe was flat in currency terms. However, RoW grew 6.7%, as a result the overall geographical growth was reported at 0.4%.
De-growth in communication business: Communication business dropped 1.4% due to furloughs, decline in top clients, volatility of currency and projects slow down. The slowdown was experienced with more than couple of clients. The company said that Chennai floods impacted the numbers marginally.
Telecom portfolio: The telecom portfolio continued to experience headwinds in third quarter of FY16. However the company said that the worst part of decline is over and telecom business is likely to get stable, if not grow, in coming quarters.
Clients and large deals: The active clients count went up by 13 to 800 in Q3. 1million+ clients went up by 28 to 326 while 20million+ client went by 1 qoq. The company said the acquisition of Pininfarina has been one of the major deals in Q3 and is likely to show good results in coming quarters. However, the company could not crack large deals as per the guidance given in Q2. Five of the large deals are said to be in process or waiting for approval.
New launches: Tech Mahindra launched electric two wheeler launched in US based on Internet of Things technology. The IT firm management said that the launch of connected scooter will set stage for the development of connected cars, Tom Tom deal and Pininfarina acquisition being the key factors in the development.
Future prospects: The company said it will focus on cost optimisation and DSO improvement. Moreover, it will work on margin improvement and continue to focus on productivity, business efficiency and automation.
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