Processing .....please wait.. 
The article has been forwarded.... 
Tech Mahindra manages a net profit of 10 percent
By siliconindia
|
Tuesday, 27 July 2010, 15:16 IST |
3 Comments
1.137 crore and net profit grow 10 percent to 144.3 crore backed by other income and lower interest expense over the quarter last year.
Business from telecom sector clients was not so forceful while the weakening pound added to the firm's woes. "The company's first quarter results were in line with the performance of other IT majors which operate in the telecom segment. Telecom is a bit under pressure," said Vineet Nayyar, Vice-Chairman, Tech Mahindra.
Revenues from British Telecom (BT), were steady at around $70 million to $72 million a quarter. BT accounts for 45 percent of Tech Mahindra's revenues. "The results were a bit of a negative surprise. Mid-size and small IT firms have not done so well in the first quarter," said Shashi Bhushan, senior research analyst at brokerage, Prabhudas Lilladher.
The company is in plans to hire more freshers and utilize these resources effectively as they would not cost more than experienced employees. Tech Mahindra had added four new clients and 1,743 employees in the first quarter which rounded up their employee count to 35.267 at present. The company entered the Latin American market and won contracts to optimise the IT performance of a Latin American telecom firm.
Tech Mahindra had also realized attrition in the first quarter where they saw attrition increase to 27 percent from 22 percent in the prior quarter.