Tech Mahindra announces Rs.276 crore profit

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MUMBAI, INDIA: Tech Mahindra has reported a net profit of Rs.276 crore with a total revenue of Rs.1,445 crore for the third quarter ending December, 2011.

Tech Mahindra’s net profit surged by 7.4 per cent year-on-year and its revenue increased by 8.4 percent on quarterly basis.

Vineet Nayyar, vice chairman, MD & CEO of Tech Mahindra, said: “It has been a satisfactory quarter despite the challenging uncertain economic environment and Europe crisis. There’s a change in customer behaviours, decision making cycles are getting longer and even though IT spend is flat there’s a growing demand for off-shoring.”

During the third quarter, the company’s onsite revenue contributed 39 per cent and rest 61 per cent came from offshore. IT utilization rate, including trainees and internal project, stood at 73 per cent while attrition was around 20 per cent.

The company’s revenue growth in North America remained at 33 per cent. Europe dropped to 45 per cent while the rest of the world grew by 22 per cent during Q3.

“Eurozone crisis will help us with considerable opportunities. Our move away from the traditional IT business into operations is helping us grow. We are seeing opportunities in operations with telcos and that is giving us optimism going forward,” Nayyar commented.