The fifth-largest software exporter Tech Mahindra on Tuesday reported a 7.2 per cent growth in June quarter net profit at Rs676 crore, helped by forex gains flowing from depreciation of the rupee.
The Mahindra Group company's revenue rose 22.9 per cent to Rs6,294 crore while pre-tax profit rose a marginal 0.8 per cent to Rs936 crore.
It reported a forex gain of $14.7 million as against $11.7 million a year ago and forex losses of $25 million in the preceding quarter. Chief Financial Officer Milind Kulkarni attributed this to the falling rupee.
Executive Vice-Chairman Vineet Nayyar said there was a 0.20 per cent dip in operating margin to 14.9 per cent due to a jump in visa costs and impact of acquisitions where the target companies work on a lower profitability.
But he was quick to add that the company is satisfied with the margin figure and is working on various aspects to improve the same with multiple interventions.