Tech Mahindra : First-Quarter Net Profit Rose 1.4% on Lower Tax Expenses

By Kosaku Narioka

Tech Mahindra Ltd.'s first-quarter profit rose 1.4% thanks partly to lower tax expenses, it said late Monday.

The Indian information-technology-services company said net profit for the quarter ended June 30 rose to 9.72 billion Indian rupees ($129.9 million) from INR9.59 billion a year earlier. That beat the estimate of INR7.80 billion from a FactSet poll of analysts.

First-quarter revenue increased 5.2% from a year earlier, to INR91.06 billion, while expenses including employee benefits and subcontracting costs rose 6.9% to INR82.39 billion. Tax expenses fell 1.3% to INR3.28 billion.

In U.S. dollar terms, revenue fell 3.2% from a year earlier, pressured by drops in communications and manufacturing industries.

Write to Kosaku Narioka at [e-mail]