In the September 2021 quarter, the company’s net profit was at Rs 1,338.7 crore as against Rs 1,064.6 crore in the year-ago period. The company’s revenues for the recently concluded quarter revenues came in at Rs 10,881 crore, up 16 per cent YoY. In dollar terms, revenues were at $1.47 billion, also up 16 per cent YoY and 7.2 per cent sequentially.
New deals on a net basis were at $750 million, the highest quarterly rise in 10 years, the company’s top management said.
The scrip was trading at Rs 1,612, up 5.75 per cent around 10.25 am on BSE. It hit the day’s high of Rs 1629.40. At the same time, the BSE Sensex was trading 92 points or 0.15 per cent higher at 61,059.
A key growth vertical for the company is 5G and Tech Mahindra has made significant investments in the space. The company also announced that it has purchased two companies – Infostar LLC (based in the US) and Uk-based We Make Websites Ltd for $105 million and 9.4 million pound sterling, respectively.
In a statement, the company said that the acquisition will boost digital engineering capabilities and enhance the company’s positioning in the space.
“We continue to stay on the sidelines on Tech Mahindra as we see its strong business performance balanced with elevated operational risks in a supply-constrained environment. While commentary on 5G remains upbeat, we await further clarity on the sustained impact of 5G spends on growth, given the repurposing of budgets in 5G, which should taper down the momentum unlike previous cycles,” said brokerage Motilal Oswal Financial Securities as it maintained a Neutral rating on the stock.
