May 25, 2018 / 10:29 AM / 25 days ago

Tech Mahindra fourth-quarter profit tops estimates on more deal wins

(Reuters) - Tech Mahindra Ltd posted a quarterly profit on Friday that handily beat analysts’ estimates, boosted by a rise in deal wins and the rupee’s weakness against the U.S. dollar.

An employee sits at the front desk inside Tech Mahindra office building in Noida on the outskirts of New Delhi March 18, 2013. REUTERS/Adnan Abidi/Files

The software services exporter saw a rise of 8.3 percent in the number of active clients, and strong growth in deal wins in the $5 million and $10 million client categories.

Gains from foreign exchange rose nearly 8 percent to 1.74 billion rupees ($25.66 million) in the fourth quarter ended March 31, Tech Mahindra said bit.ly/2xaZc5b.

Net profit more than doubled to 12.22 billion rupees, beating analysts’ average estimate of 9.34 billion rupees, according to Thomson Reuters data.

Revenue from operations rose 7.5 percent to 80.55 billion rupees.

Bigger rivals Infosys Ltd and Wipro have raised concerns over the outlook for the current year, while Tata Consultancy Services Ltd, the country’s top software services exporter, seems upbeat.

Tech Mahindra said it appointed Manoj Bhat as the chief financial officer. Current CFO Milind Kulkarni is retiring at the end of May.

($1 = 67.8050 Indian rupees)

Reporting by Tanvi Mehta in Bengaluru; Editing by Vyas Mohan and Subhranshu Sahu

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