Oct 15 (Reuters) – India’s Tech Mahindra on Thursday beat second-quarter revenue expectations, helped by steady growth in its manufacturing and communications verticals and a weak rupee.
The IT services company also said it would issue bonus shares worth up to 4.9 billion rupees, the first time it has done so since 2015.
Consolidated revenue rose 15.6% to 161.80 billion rupees ($1.70 billion) year-on-year. Analysts, on average, expected revenue of 151.95 billion rupees, as per data compiled by LSEG.
Analysts had expected Tech Mahindra to post one of the fastest revenue growth rates among large-cap IT services companies in the quarter, driven by large deal ramp-ups from clients including telecommunications provider Orange Business.
The firm reported a 32.7% year-on-year rise in profit to 15.86 billion rupees, missing estimates of 17.08 billion rupees.
The communications division’s revenue, which accounts for a third of the Pune-based company’s total, rose 9.5% year-on-year. Revenue from its manufacturing division, its second-largest, grew 7%.
Revenue from the Tech Mahindra’s banking and financial services segment, which the company has been pushing to expand in recent quarters, was up 4.6%.
New deal wins in the quarter stood at $1.02 billion, up from $816 million in the same quarter last year.
Larger peers TCS and HCLTech reported their results earlier in the month, while Wipro reported higher quarterly revenue earlier in the day.
($1 = 95.0550 Indian rupees)
(Reporting by Abhirami G and Surbhi Misra in Bengaluru; Editing by Sonia Cheema and Jochelle Mendonca)
Comments