{"id":30746,"date":"2017-05-27T12:11:53","date_gmt":"2017-05-27T12:11:53","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=30746"},"modified":"2017-05-27T12:11:53","modified_gmt":"2017-05-27T12:11:53","slug":"tech-mahindra-fourth-quarter-profit-dives-33-percent-weak-margins","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/world-news\/tech-mahindra-fourth-quarter-profit-dives-33-percent-weak-margins.html","title":{"rendered":"Tech Mahindra fourth-quarter profit dives 33 percent on weak margins"},"content":{"rendered":"<h2 style=\"text-align: justify;\">\n\t<span style=\"font-size:22px;\"><strong><span style=\"font-family:arial,helvetica,sans-serif;\">Tech Mahindra fourth-quarter profit dives 33 percent on weak margins<\/span><\/strong><\/span><br \/>\n<\/h2>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Tech Mahindra Ltd, India&#39;s fifth-largest software service provider, posted a lower-than-expected fourth-quarter consolidated profit on Friday, weighed down by weak margins and higher cost of services.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Consolidated profit for the quarter ended March 31, fell 33 percent to 5.90 billion rupees<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Analysts on average had expected March-quarter consolidated profit of 7.83 billion rupees, Thomson Reuters data showed.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Consolidated margin on earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 12 percent in the quarter from 16.7 percent a year earlier.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">EBITDA took a $20 million hit which came from the company&#39;s exit of a networking business contract, Milind Kulkarni, chief financial officer of the company said.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">An appreciating rupee in the quarter and a $15 million impact from &quot;re-profiling&quot; some of the company&#39;s legacy business also contributed to the fall, Kulkarni added.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">The company re-negotiated contracts with some of its clients to provide traditional IT services at cheaper rates while clients assured to spend more on automation and artificial intelligence driven services.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">The impact of this &quot;re-profiling&quot; on the company&#39;s finances will be visible for the next two to three quarters, Kulkarni said.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Consolidated total tax expenses surged 28 pct to 2.32 billion rupees, while cost of services jumped 14.7 percent.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">The company posted a near 10 percent jump in consolidated total revenue, helped by growth in its European business.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">&quot;The deal pipeline is stronger in emerging markets and digital transformation,&quot; C. P. Gurnani, chief executive of Tech Mahindra said.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:8px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Source:-&nbsp;http:\/\/in.reuters.com\/article\/tech-mahindra-results-copy-idINKBN18N043<\/span><\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/world-news\/tech-mahindra-fourth-quarter-profit-dives-33-percent-weak-margins.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>Tech Mahindra fourth-quarter profit dives 33 percent on weak margins Tech Mahindra Ltd, India&#39;s fifth-largest software service provider, posted a lower-than-expected fourth-quarter consolidated profit on Friday, weighed down by weak margins and higher cost of services. Consolidated profit for the quarter ended March 31, fell 33 percent to 5.90 billion [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":30748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5470],"tags":[19069],"class_list":["post-30746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news","tag-tech-mahindra-fourth-quarter-profit-dives-33-percent-on-weak-margins"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/30746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=30746"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/30746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/30748"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=30746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=30746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=30746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}