Tech Mahindra profit rises 23 pct, beats estimates

Tech Mahindra profit rises 23 pct, beats estimates

Original post by REUTERS

(Reuters) – Tech Mahindra Ltd (TEML.NS), the IT outsourcing business of India’s $15 billion Mahindra Group, b e at expectations with a 23.3 percent rise in second-quarter profit, boosted by increased client spending and a good performance at its unit Satyam Computer Services Ltd (SATY.NS).

Profit for the September quarter rose to 2.96 billion rupees from 2.4 billion rupees in the year-earlier period, Tech Mahindra said in a statement on Monday. That compares with analysts’ average estimate of 2.48 billion rupees, according to Thomson Reuters I/B/E/S.

India’s $100 billion-per-year IT industry earns more than 90 percent of its revenue from services including maintaining computer systems and networks and software applications, and back-office support. The sector gets some three quarters of its revenue from the United States and Europe. Australia is also a big market for the sector.



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