Tech Mahindra
Tech Mahindra posted much better than expected numbers for Q4FY13. The company posted a 25% (YoY) rise in consolidated net profit at Rs.377 crore and this was on a 35% rise in revenue at Rs.1907 crore. The consolidated numbers also includes that of Hutchison Global Services, the same company which Tech Mahindra acquired in Sept’12 for a consideration of Rs.485 crore. The rise in net profit was despite the forex loss of Rs.37 crore in Q4 but at the same time, it also had exceptional gains of Rs.57 crore. EBIDTA margin was at a very healthy 19.9%. In terms of geographical break-up, it is not America but Europe which contributed the maximum to the revenue, at 43%; America was at 29% and the Rest of the World was at 27%.
The company ended the year with a 18% rise in net profit at 1288 crore on a 25% rise in revenue at Rs.6873 crore. During the year, the company had 151 active clients, up from 130 in FY12. In terms of employees, it had a total of 47,498 employees, which included 24,410 software professionals, 21,552 BPO employees and 1,536 support staff. Also about 600 software professionals and 1,013 BPO professionals left the company in Q4. As at 31st March 2013, it had cash and cash equivalent of Rs.710 crore and debt was at Rs.1380 crore. The next big trigger in the company will obviously be the judgement on its merger with Satyam. Some 35 companies of Raju and his relatives have objected to the merger. They claim that they had lent Rs.1230 crore to company in several tranches during Raju’s time and they want their money back and thus got a stay. The new management has refuted this money as it has stated that there was no entry of this money being lent anywhere in the books. The minority shareholders too have objected over the swap ratio and filed a petition. The Andhra Pradesh High court has reserved its orders and is expected to announce a decision by second week of June.