Billing rates in the fourth quarter were down 2.5% as telecom companies have sought discounts on pricing of IT engagements
The volatile economic environment coupled with forex losses led to Tech Mahindra posting a muted net profit growth of 5 percent for the fourth quarter ended March 31, 2009.
The telecom solutions provider reported a net profit after tax of Rs 230.4 crore as against Rs 218.7 crore reported in the same quarter a year ago. Revenues for the same period rose by three percent to Rs 1,051.3 crore, against Rs 1,021.8 crore.
Due to the challenging economic environment, decision making for new deals continues to get delayed while some IT projects are not starting as scheduled, Vineet Nayyar, Vice-Chairman, CEO and Managing Director of Tech Mahindra, said in a conference call with analysts.
The billing rates for the fourth quarter were dented by 2.5 percent as telecom companies have sought discounts on pricing of IT engagements. The pressure on pricing is expected to continue in the next few quarters, added Nayyar.
Source: The Hindu Business Line
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