Employees enter the Tech Mahindra Ltd. campus in the Hyderabad Information Technology and Engineering Consultancy City. (Photographer: Dhiraj Singh/Bloomberg)

Q2 Results: Tech Mahindra Meets Estimates On Higher Margins

Oct 30 2018, 10:30 AMOct 30 2018, 11:10 AMOctober 30 2018, 10:30 AMOctober 30 2018, 11:10 AM

Tech Mahindra Ltd.’s quarterly profit growth met estimates backed by higher margins.

Net profit rose 18.5 percent quarter-on-quarter to Rs 1,064.3 crore for the quarter ended September, the company said in an exchange filing today. That compares with the Bloomberg consensus estimate of Rs 1,013 crore.

Revenue rose 4.3 percent on a sequential basis to Rs 8,629.8 crore during the three-month period. That was also above the Rs 8,609 crore forecast. Revenue in dollar terms fell 0.5 percent from the last quarter to $ 1,218 million.

The operational performance surpassed analysts estimates as well. The earnings before interest and tax rose 23.1 percent quarter-on-quarter to Rs 1,324.2 crore. The operating margin expanded to 15.3 percent during the period from 13 percent—analysts had forecast 14.1 percent.

Shares of the tech company have risen 3.1 percent to Rs 685 ahead of the results announcement. That compares with a 1.6 percent advance of the NSE Nifty IT Index.