BRUSSLES: Country’s fifth largest software exporter Tech Mahindra today reported a 16.93 per cent dip in September quarter net income at Rs 644.7 crore from Rs 776.1 crore a year ago owing to restructuring exercise in Europe which hurt its margins.
Though revenue rose 8.34 per cent to Rs 7,167.4 crore, margins compressed to 14.9 per cent from 16.4 per cent.
Chief Financial Officer Milind Kulkarni said the quarter saw a USD 13 million hit due to a one-time restructuring exercise in Belgium, where it transfered a part of its operations to India, resulting in margin impact.
Provisions for taxes also increased to Rs 286 crore from Rs 190 crore in the year-ago period, but Kulkarni clarified that this does not signify an increase in the overall tax outgo, which is spread over the year.
During the reporting quarter, revenue from European operations grew the fastest at 9.4 per cent over the preceding June quarter, followed by the US at 2.5 per cent.
Vice-Chairman Vineet Nayyar flagged concerns on the increasingly protectionist attitudes across the world, and added that irrespective of the election result in the US, “we should expect more of the inward looking outlooks”.
