Tech Mahindra Q1 net plunges 49 percent y-o-y

Silicon India
Bangalore: IT firm Tech Mahindra reported 49.08 per cent plunge in net profit at Rs.131.62 crore for the quarter ended June 30, 2009 owing to the interest costs on borrowings the company incurred after acquiring Satyam.

Tech Mahindra, which recently acquired 42.7 percent stake in Mahindra Satyam, had a net profit of Rs 258.52 crore in the June quarter of last fiscal. Total income of the company fell five percent to Rs.1,086.88 crore during third quarter, from Rs 1,142.50 crore in the year-ago period. On a quarter-on quarter basis, the company's net profit dropped 43 percent from Rs.230.40 crore in the March quarter of FY'09.

As of June 30, 2009, the company's debt stood at Rs 2,380.2 crore. Vineet Nayyar, Vice Chairman, Tech Mahindra said, "This has been a momentous quarter which has redefined Tech Mahindra's positioning in the market place. Not only has our leadership position in telecom been reinforced, but our presence has expanded across other industry verticals as well."