Tech Mahindra
The company posted a consolidated net profit at Rs.1010 crore, up by a whopping 214% (YoY) and 41% sequentially. But sift through the numbers and you realize that the unusual jump in net profit, despite a 33% (YoY) and 3% (QoQ) jump in revenue at rs.4899 crore was thanks to the exceptional income of Rs.347 crore. This includes write back of Rs.120 crore, which was excess provision for contingencies provided in an earlier year by erstwhile Satyam and tax writeback of Rs 226.6 crore. Excluding this gain, net profit would have come in at Rs 663 crore for the quarter. But then again, we have borne the burden of these taxations and provision of contingencies in the past; so now is the time to enjoy the benefits of the same!
Operationally, the company did well, with consolidated EBITDA rising 43% (YoY) and 2% (QoQ) at Rs.1136 crore. EBITDA margin was status quo at 23.28%. In terms of dollars, revenue YoY rose 17% and net profit rose 176%. Its total headcount for the year at 87,399, QoQ it made a net addition of 2,165. Its debt as at 31st Dec’13 was at Rs.342 crore and cash was at Rs.3459 crore – meaning the company is actually debt free in that sense. Its active client stood at 605 in Q3FY14 v/s 576 in Q2FY14. The good numbers apart, what will truly enthuse the market is the Board’s decision to increase Tech Mahindra"Ÿs FII limit from present 45% to 48%.