BENGALURU: Software services company Tech Mahindra on Monday reported a 17.4 per cent sequential decline in consolidated profit at Rs 1,081.4 crore for the quarter ended March 2021. The profit in the previous quarter was at Rs 1,309.8 crore.
Consolidated revenue for the quarter at Rs 9,729.9 crore grew by 0.9 per cent over Rs 9,647.1 crore in December quarter. While the numbers missed analysts’ expectations, the company reported a robust new deal pipeline at $1.04 billion for the quarter. The operating margin saw an expansion of 10 basis points QOQ at 16 per cent for the quarter.
“We are witnessing a strong demand acceleration and are committed towards delivering a next-level human-centered experience of the future. The health and wellness of our associates and community, at large, continues to be our prime focus, as we navigate through this pandemic together,” said CEO CP Gurnani. He added that the company’s focus on cutting-edge technologies has expanded client engagement with large deal wins during the quarter.
IT services business registered a 1 per cent sequential growth in revenue at Rs 8,673 crore but the BPO segment revenue was almost flat at Rs 1,056.9 crore in Q4FY21 against Rs 1,056.6 crore in the previous quarter.
Revenue in dollar terms grew by 1.6 percent sequentially to $1,329.6 million and the revenue growth stood at 0.7 percent QoQ in constant currency terms. At the operating level, earnings before interest and tax (EBIT) at Rs 1,553 crore grew 1 per cent QoQ, and margin expanded 10 bps QoQ to 16 percent in Q4FY21. IT attrition rate rose to 13 per cent in March quarter compared to 12 percent in the previous quarter. Total headcount at 1,21,054 was lower by 847 compared to the December quarter.
Acquires US firm Eventus Solutions
Making its fourth deal this year, Tech Mahindra is set to acquire US-based firm Eventus Solutions Group for $44 million, which includes earnout payments.