Tech Mahindra net down 10.8% in Q2

Tech Mahindra announced a 10.8 per cent decline in its net profit for the quarter ended September 2010. The profit stood at Rs150.7 crore against Rs169 crore registered in the same quarter last year as the company took a charge of Rs36.7 crore on account of shareholding in Mahindra Satyam. HT reports.

Tech Mahindra announced a 10.8 per cent decline in its net profit for the quarter ended September 2010. The profit stood at Rs150.7 crore against Rs169 crore registered in the same quarter last year as the company took a charge of Rs36.7 crore on account of shareholding in Mahindra Satyam.

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The company that owns 30 per cent stake in Mahindra Satyam, taken over after an accounting scandal, said wage hikes also hit profit margins.

But revenues moved up by 34.4 per cent. Revenues stood at Rs1,533 crore as compared to Rs1,141 crore in the corresponding quarter last year.

Tech Mahindra added seven new clients during the quarter and has a client base of 124 now.

"For the first time we are seeing the signs of demand recovery and we are getting a fairly decent traction with our customers across geographies," Vineet Nayyar, chief executive and managing director of Tech Mahindra told a news briefing.