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Tech Mahindra Q2 results: Net profit jumps 26% YoY to Rs 1,339 cr – Economic Times

NEW DELHI: IT major (TechM) on Monday reported a 25.8 per cent year-on-year (YoY) jump in net profit at Rs 1,338.70 crore for the September quarter compared with Rs 1064.60 crore in the same quarter last year. On a sequential basis, profit fell 1 per cent over June quarter’s Rs 1,353.20 crore profit.

Revenue for the quarter jumped 16.1 per cent YoY (up 6.7 per cent QoQ) to Rs 10,881.30 crore compared with Rs 9,371,80 crore in the year-ago quarter.

In dollar terms, revenue came in at $1,472.6 million, up 16.4 per cent YoY or 6.4 per cent sequentially. Revenue growth in constant constant currency terms stood at 7.2 per cent, the IT firm said in a BSE filing.

On results, Managing Director & Chief Executive Officer said, “As we record our highest sequential growth in a decade, we remain committed to deliver long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships.”

The company board announced a special dividend of Rs 15 per share.

Meanwhile, the IT major announced the acquisition of California-headquartered Infostar LLC (Lodestone). Tech Mahindra will pay total consideration of up to $105 million including earnouts. Lodestone is a digital engineering quality assurance provider for new-age digital companies.

On the acquisition, Vivek Agarwal of Tech Mahindra said, “The acquisition of Lodestone is in line with our strategy to strengthen digital capabilities and provide enhanced and comprehensive transformation services to our customers globally. This will bring significant synergies to complement our domain expertise and will help drive growth going forward.”