Tech Mahindra Q2 net rises 58% to Rs 718 crore

India’s fifth largest IT company Tech Mahindra reported a 58% growth in net profit at Rs 718 crore and a 35% growth in revenue at Rs 4,771 crore on a year-on-year basis for the second quarter of the financial year 2013-14.

India’s fifth largest IT company Tech Mahindra reported a 58% growth in net profit at Rs 718 crore and a 35% growth in revenue at Rs 4,771 crore on a year-on-year basis for the second quarter of the financial year 2013-14.

The company’s revenue grew 4.7% sequentially in dollar terms at $758 million, meeting analysts’ expectations.

“We are seeing resurgence of confidence in Europe with apparent green shoots in the economy. The revival of the US was a relief,” said Vineet Nayyar, executive vice-chairman, Tech Mahindra about the results. “The acceptability of external assistance has grown,” he said, referring to companies in developed markets relying on cost-effective information technology solutions from Indian software companies.

During the second quarter, Tech Mahindra won two large deals in the US and Europe. The company added nine new clients too. The company added close to 2,000 employees during the quarter, taking its total headcount to 85,234.

The European market grew 6.8% in the second quarter on a sequential basis, while the US and rest of the world rose 1.5%. The company reported a consolidated foreign exchange loss of Rs 26 crore last quarter. Tech Mahindra stock hit a six-and-a-half year high of `1,605 intraday on Thursday before closing marginally high at Rs 1,580 on the Bombay Stock Exchange.