Tech Mahindra To Acquire US Based Born Group at USD 95 Million, Net Profit Grew At 5.6%

IT firm Tech Mahindra posted 5.6 percent increase in consolidated net profit at Rs 1,124 crore for the September quarter, and said it would acquire US-based Born Group at an enterprise value of USD 95 million (approximately Rs 671 crore).

The Mumbai-based company had registered a net profit of Rs 1,064.3 crore in the July-September 2018 quarter, Tech Mahindra said in a statement.

Its revenue from operations grew 5.1 percent to Rs 9,070 crore in the quarter under review from Rs 8,629.8 crore in the year-ago period, it added.

In dollar terms, the company’s profit was at USD 158.6 million, while revenue was USD 1.28 billion in the September 2019 quarter.

“We are thankful to our customers for believing in our capabilities despite a tough demand environment. Our consistent large deal wine is a testimony of our differentiation in the marketplace,” Tech Mahindra Managing Director and CEO CP Gurnani said.

He added that the company was confident of its growth outlook for both communications and enterprise businesses. “Digital continues to be a strong growth driver as we help our customers in their transformation journey,” he said.

Tech Mahindra Chief Financial Officer Manoj Bhat said the company has witnessed a broad-based growth across geographies and customers. “We continue to focus on margin improvement while transitioning some of the large deals in a volatile macroeconomic environment,” he added.

During the quarter, the company signed a multi-year agreement with AT&T to expand strategic collaboration accelerating the latter’s IT network transformation, shared services modernization and movement to the cloud.

Tech Mahindra said its board has approved the proposal to acquire 100 percent stake in Born Group Pte Ltd, directly and indirectly through its wholly-owned subsidiary — Tech Mahindra (Singapore) Pte Ltd.

Suzuki Motor Corp Q2 operating profit down 32%

Japanese auto major Suzuki Motor Corporation on Tuesday reported 31.83 per cent decline in operating profit at 55.90 billion yen (around Rs 3,630 crore) in the second quarter ended September 30, mainly hit by slowdown in India. The company, which operates in India through its subsidiary Maruti Suzuki India (MSI) , had posted operating profit of 82 billion yen (around Rs 5,330 crore) in the same period last fiscal.

Net sales in the period under review stood at 847.9 billion yen (around Rs 55,110 crore) as against 941.9 billion yen (about Rs 94,190 crore) in the year-ago period.

The decline in net sales were due to decrease in Japan production on restructuring of final inspection structure and decrease in Indian automobile sales driven by slowdown in the overall market, the company said in a presentation on its website.

SMC said its global sales declined 17.2 per cent to 14.08 lakh units owing to decrease in India and Japan. Sales in India, where MSI has nearly 50 per cent market share, were down 26.5 per cent at 6.75 lakh units. In Japan, the drop was 4.6 per cent to 3.33 lakh units. However, in Europe the company posted a growth of 7.3 per cent at 1.49 lakh units.

Apollo Tyres Q2 profit falls 43% to Rs 83 cr

Apollo Tyres on Tuesday reported 43.15 per cent decline in its consolidated net profit at Rs 83 crore for the second quarter ended September 30, hit by weak performance in the domestic market. The company had posted a net profit of Rs 146 crore for the July-September period of 2018-19.

Net sales declined to Rs 3,926 crore during the second quarter as against Rs 4,192 crore in the year-ago period, Apollo Tyres said in a statement.

For the six months ended September 30, the company reported net profit of Rs 225 crore as against Rs 398 crore in the same period last fiscal. Net sales during the April-September period this fiscal stood at Rs 8,198 crore, as against Rs 8,442 crore in same period of 2018-19.

Dabur Q2 net profit up 7% at Rs 403.64 crore

Homegrown FMCG major Dabur India on Tuesday reported 6.91 per cent increase in consolidated net profit at Rs 403.64 crore for the second quarter ended September 30. The company had posted a consolidated net profit of Rs 377.55 crore in the same quarter last fiscal, Dabur India said in a regulatory filing. The net profit was impacted by one-time impairment in value of investments to the tune of Rs 40 crore, the firm said. Revenue from operations stood at Rs 2,211.97 crore as against Rs 2,124.97 crore in the year-ago period, a growth of 4.09 per cent, it added.