Mumbai, NFAPost: Information technology (IT) services company Tech Mahindra on Wednesday registered a 34% rise in its first quarter profit. The Pune-headquartered firm’s profit increased to Rs 1,140 crore, compared to Rs 851.5 crore a year earlier. The firm’s profit fell 2.2% from the last quarter.
Revenue for the quarter increased 2.7% to Rs 13,351 crore, helped by communications and banking financial services and insurance (BFSI) business. Both the verticals, which contributed 33.8% and 16.4% to the topline, were up 2.5% and 4.7%, respectively.
The results missed Bloomberg estimates on both profit and revenue, which were expected to be Rs 1,195.1 crore and Rs 13,422.3 crore for the quarter.
“The market is very volatile and the macro environment continues to remain uncertain. The sentiment is not conducive for discretionary investments,” Mohit Joshi, chief executive officer of the firm, said at a news conference on Wednesday.
While the firm’s biggest business, telecommunications, remains stable and on track for growth, the company continues to see slowdown in the auto business and hi-tech. Manufacturing, which includes auto, declined 4% while technology, media and entertainment business was down 3.3%.
From a geographical perspective, the growth in America dropped about 6 per cent, only to be offset by Europe which was up 11.7%. Trade wars and tariff threats have dampened business sentiment with manufacturing, retail, and consumer packaged goods already bearing the brunt.
