Bagging key telecom clients in Europe and one in India helped IT service provider Tech Mahindra post a net profit of Rs 276.5 crore for the quarter ended June 30, 2011, up 91.6% from Rs 144.3 crore a year ago. Mahindra Satyam contributed Rs 96 crore to its profit.Tech Mahindra’s net revenue grew by 14% to Rs 1,292.5 crore in April-June 2011 as against Rs 1,133.7 crore recorded in the same period in 2010.
“This is a crucial time for us because of the situation in Us and Europe,” said Vineet Nayyar, MD and CEO, Tech Mahindra on Friday.
“The changing macro economic conditions could pose challenges, but long-term demand is intact... this is the decade of data with social networking, cloud and application, and we have aligned with changing customer priorities and needs.”
The company has announced a 12% wage hike for off-shore employees and 2.7% for onshore ones, which will impact the next quarter finances.