BENGALURU, April 22 (Reuters) – Indian IT services company Tech Mahindra posted fourth-quarter revenue that beat analysts’ estimates on Wednesday, with six out of its seven segments growing year-on-year.
Consolidated sales for the quarter ended March 31 rose 12.6% year-on-year, the firm’s first double-digit revenue growth since March 2023, to 150.76 billion rupees ($1.61 billion). Analysts’ average estimate was 147.77 billion rupees, as per data compiled by LSEG.
The company’s shares, which were down 6% before the results, pared all losses and were last trading flat at 1,501.80 rupees.
The Pune-based IT major’s core communications business, from which it derives a third of its revenue, grew 5.6% on-year. This, despite larger rival HCLTech flagging softness in non-essential spends among telecom clients.
The rupee’s depreciation also helped earnings during the quarter, as software services companies typically bill in foreign currencies. The local currency fell 4% against the U.S. dollar during the quarter.
By geography, revenue from the Americas grew by 7.7%. Revenue from Europe grew 7.4% year-on-year.
Net profit for the quarter rose 16% to 13.54 billion rupees, which was below analysts’ average estimate of 14.92 billion rupees.
Tech Mahindra’s net new order bookings in the fourth quarter rose to $1.07 billion from $798 million a year earlier. In the fourth quarter, Tech Mahindra announced a five-year deal with European telecom company Orange Business.
Industry leader Tata Consultancy Services posted a quarterly earnings beat and strong deal wins, but logged a rare decline in annual revenue in dollar terms, whereas Wipro and HCLTech missed estimates on delays in deal ramp-ups, non-essential spending cuts and client issues.
($1 = 93.8425 Indian rupees)
(Reporting by Haripriya Suresh; Editing by Harikrishnan Nair)
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