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Tech Mahindra's net profit dips marginally

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DQI Bureau
New Update

Tech Mahindra, the IT outsourcing business of the Mahindra group has reported its financial results for the quarter ending 31 December 2012. Its consolidated net profit dipped marginally to Rs 275.77 crore for the third quarter ended December 31, 2012 against a net profit of Rs 276.03 crore in the same period last year.

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This is due to a one-time settlement made by Mahindra Satyam - a payment of Rs 294 crore towards settlement of legal claims of Aberdeen.

The company's consolidated revenue in the reported quarter increased by about 24% to Rs 1,791.10 crore from Rs 1,444.87 crore last year. It also claims a 61% increase in operating profit from a year earlier to Rs 376 crore.

Tech Mahindra is merging Satyam Computer with itself and is in the penultimate stage of the process, Executive Vice Chairman Vineet Nayyar said to the media last week. Tech Mahindra owns close to 43% of Satyam.

The combined company will be India's fifth-largest software services provider, with customers such as BT Group PLC, AT&T, and SAAB.

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