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May 27, 2015

Currency fluctuations hit Tech Mahindra’s Q4 profit

The company remains optimistic for the new fiscal year.

By CBR Staff Writer

Tech Mahindra has reported a 6.5% sequential increase in revenue for the fourth quarter ending 31 March, even though net profit dropped 23% due to higher wages and fluctuating currencies.

Revenue was $984m for the quarter and profit after tax (PAT) stood at $76m. Operating profit was $149m.

The company’s revenue for the full year was $3.68bn with PAT of $427m, while it reported an operating profit of $675m.

Tech Mahindra executive vice chairman Vineet Nayyar said: "Q4 results faced unfavourable macro-economic headwinds, but despite those, we had a fair run.

"While US remains our biggest play, the otherwise volatile Euro market is where we see ourselves gaining prominence. The global political scenario is capricious for our Industry and we have to remain cautiously optimistic for the new fiscal."

Tech Mahindra managing director and CEO C P Gurnani said: "Despite the blip, we grew ahead of the Industry in FY15.

"Our Inorganic investments have started to stabilise and yield results. Our growth journey continues with entry into new technology and business areas through niche platforms, focus on productization for non-linear growth, while creating an environment for IP development and leveraging maximum value from our well entrenched customer relationships."

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Earlier this year, Tech Mahindra acquired Swiss consulting & services firm SOFGEN Holdings. In 2014, the company invested $240m to buy US-based Lightbridge Communications.

The company has also partnered with IBM to build a platform for development of cloud based applications.

Tech Mahindra employed 103,281 people by the end of the year with 13,840 new hires.

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