Strong performance of Satyam Computer contributes
India’s Tech Mahindra has recorded a rise of nearly 49% in third quarter net profit.
The IT service provider said its October-December net profit rose to INR2.57bn ($56.35m) from INR1.73bn ($37.93m) a year earlier.
The profits include a gain of INR515m ($11.3m) from its ownership of Satyam.
Tech Mahindra had bought its controlling stake in Satyam Computer in April 2009.
The company has reported a rise in other income to INR521m ($11.42m) from INR6m ($13144) a year earlier, supported by foreign exchange gains and yields on investments. Consolidated revenue rose 2%.
The company said interest costs fell in 2010 as the company paid off the INR900m ($19.71m) debt it had incurred while buying its controlling stake in Satyam Computer.
However, Tech Mahindra depends mostly on the telecom sector, which has been slow to recover from the recession.
Tech Mahindra chief operating officer L Ravichandran said he expects telecom clients in Europe to start investing into technology outsourcing services by the end of 2011 or early next year.