Tech Mahindra Ltd., provider of solutions and services to the telecommunications industry, reported a higher net profit for the fourth-quarter, both on stand-alone and consolidated basis, on an increase in income from all its verticals.
Stand-alone Results
The Mumbai-based company's fourth-quarter stand-alone net profit was Rs.135.80 crore or Rs.10.20 per share, higher by 68 percent than the Rs.80.32 crore or Rs.6.08 per share in the corresponding quarter last year.
Results for the preceding year quarter included a one-time charge of Rs.67.87 crore under exceptional items.
Income for the quarter from operations grew by ten percent to Rs.1,496.50 crore from Rs.1,360.42 crore for the same period last year, while other income was positive at Rs.24.33 crore, compared to a negative income of Rs.13.66 crore in Q4FY12.
For the twelve months, Tech Mahindra reported a stand-alone net profit of Rs.652.52 crore, up by 42 percent from the Rs.460.56 crore in 2012. Income from operations increased by 14 percent to Rs.6,001.89 crore from the Rs.5,243.02 crore for the first twelve-month ended March 31, 2012, while other income was negative at Rs.95.15 crore, compared with a positive income of Rs.67.73 crore in 2012.
Consolidated Results
The company's fourth-quarter consolidated net profit, after minority interest and share of profit in associates, was at Rs.377.24 crore or Rs.28.32 per share, whereas the same was at Rs.302.50 crore or Rs.22.89 per share in the fourth-quarter of 2012, an increase of 25 percent. Net profit and earnings per share grew by 25 and 24 percent respectively.
Income from operations for the quarter stood at Rs.1,907.17 crore, up by 34 percent from last year's Rs.1,419.05 crore, while other income was negative at Rs.23.47 crore, compared with a negative income of Rs.21.14 crore in the year-ago quarter.
During the quarter, income from 'Telecom Service Provider' segment totaled Rs.1,410.37 crore, up by 23 percent from the Rs.1,142.62 crore in the prior year quarter, while that of 'Telecom Equipment Manufacturer' rose by 12 percent to Rs.101.14 crore from the Rs.90.35 crore in the year-ago quarter.
Income from 'BPO' segment for the quarter more than doubled to Rs.338.70 crore from the Rs.147.25 crore in the prior-year quarter, whereas income from 'Others' amounted to Rs.56.96 crore, compared with Rs.38.83 crore in the corresponding quarter last year.
Among geographical areas, the Americas region contributed 30 percent to the total income during the quarter, while contribution from Europe and rest of world was 43 percent and 27 percent respectively.
For the fiscal year, Tech Mahindra's consolidated net profit, after minority interest and share of profit in associates, amounted to Rs.1,287.81 crore, while the company reported Rs.1,095.54 crore a year-ago, reflecting an 18 percent growth. Income from operations was Rs.6,873.08 crore, higher by 25 percent than the Rs.5,489.69 crore in 2012, while other income was negative at Rs.74.70 crore, compared with a positive income of Rs.98.17 crore last year.
Total headcount for the year stood at 47,498, while Active Client count was at 151 versus 130 in FY12.
The company's Board recommended a dividend of 50 percent or Rs.5.00 per equity share of Rs.10 each for the fiscal year 2013.
Executive Vice-Chairman & Managing Director Vineet Nayyar, said, "I am satisfied that we have delivered profitable growth for FY13, with significant margin improvement. I am confident that with our deep domain expertise in Telecom and a full portfolio of offerings, we wold be able to leverage our leadership position to deliver higher value, for all our stakeholders."
Managing Director C.P. Gurnani commented, "We are optimistic about FY14, buoyed by our deal pipeline, business traction from recent acquisitions and leverage of business synergies with Mahindra Satyam. Our focus on non-linear growth alternative like Platform and Customer co-innovation continues to portend a steady future for us."
At the BSE, Tech Mahindra closed Tuesday's trading at Rs.909.75, down Rs.12.25 or 1.33 percent on a volume of 153,000 shares.
For comments and feedback: editorial@rttnews.com