Tech Mahindra profit declines 38%

NEW DELHI: Country’s fifth-largest IT services company Tech Mahindra on Wednesday posted a 38% fall in June quarter net profit at Rs 692.5 crore on account of a sharp fall in the profit margins. The Mahindra group company had reported a net profit of Rs 1,131.6 crore in the corresponding period last year. In the preceding quarter, the same stood at Rs 1,117.6 crore.

The company’s revenues slid to Rs 13,159 crore in the reporting quarter from Rs 13,718 crore in the preceding quarter, and was only 3.5% up as compared to the year-ago period. Tech Mahindra reported one of the lowest operating profit in the IT services industry at 6.8% as against 11 % in the year-ago period and 11.2% in the quarter-ago period.