Tech Mahindra First Quarter Profit Rises; Beats Estimates

Tech Mahindra Ltd, India's fifth biggest software services exporter, reported a better than expected 7 per cent rise in first-quarter profit on Monday (31 July), helped by new clients for its digital services business.

The company said it added 21 active clients in the three months to the end of June, taking the total active client count to 864.

Its profit for the period was Rs 7.99 billion ($125 million) up from Rs 7.49 billion last year. Sales rose about 8 per cent to Rs 77.47 billion with revenue from its IT division some 7 per cent higher at Rs 68.63 billion.

Analysts on average had expected a profit of Rs 6 billion, Thomson Reuters I/B/E/S data showed.

The company's IT attrition rate for the last 12 months ending June 30 fell to 17 per cent from 21 percent in June 2016.

Tech Mahindra's close rival HCL Technologies Ltd reported an 8 per cent rise in profit in the three months to the end of June last week, also beating analysts' estimates.

(Reuters)