Tech Mahindra, which reported a 16.4 percent annual decline in net profit on Monday, said during an earnings call that it will spend the next few quarters improving its profitability.
Company CEO and MD CP Gurnani and CFO Rohit Anand were part of the call, in which they said while they are positive about their pipeline of deals, they will work on profitability levels and aim to deliver better profitability by being more selective about acquisitions. The company will focus on the integration of acquisitions in its three $1 billion verticals – manufacturing, communication media, and banking, financial services, and insurance (BFSI).
On Monday, Tech Mahindra in its quarterly report said its earnings before tax (EBIT) declined 12.5 percent quarter-on-quarter to Rs 1,403.4 crore, from Rs 1,604.2 crore, according to the regulatory exchange filing by the company to the stock exchanges. EBIT margin stood at 11 percent in the June quarter compared with 13.2 percent in the March quarter.
Also read:
The top executives said they were confident of industry-leading growth, though margins have bottomed at 11 percent in the reporting quarter. They said the company bagged deals worth $165 million in the communications vertical and $645 million in the enterprise segment.
Further, Gurnani and Anand said, they are not seeing any budgetary pressures on the BFSI vertical, which is expected to hold steady.
The results were released after the close of trading. Shares of Tech Mahindra ended at Rs 1,016.55, down by Rs 11.80, or 1.15 percent, on the Bombay Stock Exchange.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Stampede-like situation disrupts Rahul Gandhi, Akhilesh Yadav's joint rally in Uttar Pradesh
May 19, 2024 4:26 PM
Ladakh Lok Sabha election: With Independent candidate's entry, it's now a 3-way contest for BJP and Congress
May 19, 2024 4:01 PM