Tech Mahindra announced its Q1 financial results posting a net profit of Rs 131.62 crore at a 49 % drop in growth rate on YoY comparison. Revenues were almost flat at Rs 1,113.02 crore as compared to Rs 1,118.4 crore registered last year.

The company attributed the drop in profits to the recent acquisition of Satyam which compelled the company to incur a significant interest rate cost from the borrowing. Pressures on margins were also witnessed from its top client, British Telecom.   

“This has been a momentous quarter which has redefined Tech Mahindra’s positioning in the marketplace. Not only has our leadership position in telecom been reinforced, but our presence has expanded across other industry verticals as well,” said company Chairman, Anand Mahindra.