Tech Mahindra posts Q3 revenue growth of 5.1% at $1,353mn

Mumbai, Jan 31 (IANS) IT major Tech Mahindra on Friday said its revenue rose to $1,353 million for its third quarter ended December 31, 2019, posting a growth of 5.1 per cent over the previous quarter.

Tech Mahindra said its digital revenues grew 10.6 per cent quarter-on-quarter, at 41 per cent of revenues.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at $219 million, up 3.4 per cent quarter-on-quarter.

The company's consolidated profit after tax (PAT) in the third quarter stood at $160.6 million, registering a growth of 1.3 per cent quarter-on-quarter.

“This is a quarter of strong growth across our Communications and Enterprise businesses. We continue to win marquee deals and are well poised to capitalise on new market opportunities with technology shifts like 5G, which continues to be a key focus area in the year ahead,” CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said in a statement.

The company's headcount was at 130,839 people, a reduction of 683 from the previous quarter.

Among its key wins, Tech Mahindra inked a multi-year managed services deal with a global financial services leader in insurance and annuities. The engagement includes managing applications, Cloud and IT infrastructure across multiple geographies, while improving efficiencies through automation and Artificial Intelligence-based operations.

Tech Mahindra also announced the acquisition of 70 per cent stake in Bengaluru-headquartered Cerium Systems.

Cerium will boost the company's engineering services practice in VLSI (Very Large Scale Integration) and embedded software.

“We continue to invest in niche digital assets complementing our service offerings. Cerium provides cutting edge solutions with a strong foothold in global semi-conductor industry,” said Vivek Agarwal, Head of Corporate Development and Portfolio Companies, Tech Mahindra.

In line with the industry 4.0 goals, the IT services major has launched 5G-enabled solution to build wireless and secure “Factory of the Future”.

The company has also collaborated with InMobi to offer the industry's first video advertising solution for telecom providers, media and entertainment companies.

On Friday, Tech Mahindra's share closed marginally higher at Rs 796 on the BSE.

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