Date:09/05/2007 URL: http://www.thehindubusinessline.com/2007/05/09/stories/2007050901320400.htm

Back Tech Mahindra reports Q4 loss due to one-time expense

Our Bureau

Mumbai May 8 Hit by a one-time expense of Rs 525 crore as payment to a European client, IT services vendor Tech Mahindra Ltd has reported a net loss for the fourth quarter ended March 31, 2007 at Rs 329 crore against a net profit of Rs 89.1 crore in the corresponding year-ago quarter.

The company had made a one-time upfront payment of Rs 525 crore to a trillion dollar European client in the fourth quarter, said a company spokesperson. Tech Mahindra net revenues stood at Rs 874.5 crore, an increase of 107.6 per cent as against Rs 421.2 crore recorded in the year ago quarter.

The Pune-based company said net profit excluding exceptional items has increased by 120 per cent to Rs 196.1 crore for the fourth quarter.

After including exceptional items of Rs 524.9 crore and excess provision write back of Rs 33.9 crore, the company reported a 48.3-per cent fall in net profit to Rs 121.5 crore (Rs 235.4 crore) for the full year ending March 2007. Consolidated revenues grew 135.6 per cent to Rs 2,929 crore from Rs 1,242.7 crore in the previous year.

Tech Mahindra derived 73 per cent of its revenues from Europe for the fourth quarter, said a company release.