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Mumbai, July 26 (PTI) IT firm Tech Mahindra today posted a lower-than-expected increase of 9.65 per cent in its consolidated net profit at Rs 144 crore for the quarter ended June 30, 2010, on account of the adverse impact of currency fluctuation. The company said that the first quarter (Q1) was difficult due to currency fluctuation. "There was significant erosion in margins owing to currency headwinds," it added. Though the net profit is higher than last year''s Rs 131.6 crore, it is lower by 36.56 per cent (at Rs 227 crore) registered in Q4 FY''2009-10. Tech Mahindra provides solutions to the telecommunications industry. "It''s been a quarter where our performance was impacted, among others, by adverse currency movements," Tech Mahindra Vice Chairman Vineet Nayyar said. Meanwhile, the total income rose to Rs 1,158.96 crore in Q1 of FY''2010-11 from Rs 1,086.9 crore in the same quarter of the corresponding fiscal. "In the previous quarter, we saw prolonged decision-making cycles at key customers. We believe this to be temporary, and expect that our investments in capabilities will position us to respond quickly to customer needs during the demand resurgence," Tech Mahindra Chairman Anand Mahindra said. During the quarter, the company added 1,743 personnel, taking its total headcount to 35,267. However, utilisation was down 69 per cent due to large hiring. Speaking on the European market, which contributes to 55 per cent of the company''s revenues, Tech Mahindra CEO Sanjay Kalra said, "In Europe, we are talking of projects and opportunities, but decision cycles are still slow." The demand and the order pipeline in the North American market remains robust, he added. The North American market contributed to 32 per cent of its revenue, while the rest of the world amounted for the remaining 13 per cent. The company said that pricing continues to remain stable. Revenue form British Telecom, which accounts for a sizeable portion of the IT major''s topline, will remain stable and range around 70-72 million pounds. On a standalone basis, the company posted a net profit of Rs 128 crore in the April-June quarter, down 4.75 per cent over the year-ago period. The company added four new clients during the quarter. Shares of Tech Mahindra today closed at Rs 737.50 on the BSE, down 1.07 per cent from the previous close.
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