India's Tech Mahindra tops quarterly revenue views on manufacturing segment growth

BENGALURU, July 16 (Reuters) - ‌Indian software services ​provider ​Tech Mahindra's first-quarter revenue beat expectations on Thursday, with growth in the firm's manufacturing ‌segment and a weak rupee helping the topline.

Revenue ⁠at India's fifth-largest IT firm rose 17.7% year-on-year to 157.12 billion ‌rupees ($1.63 billion) in the ‌three months ended June 30. Analysts, on average, expected revenue of 154.76 billion rupees, according to data ​compiled by LSEG.

The company received an additional lift from the rupee's roughly 9% depreciation against the dollar ⁠over the past 12 months, as Indian IT firms typically bill overseas ​clients in foreign currencies while bearing most of their costs in rupees.

The firm reported 28.5% ​year-on-year rise in profit in ‌the quarter at 14.65 billion rupees, missing estimates of 15.63 billion rupees.

The communications division's ⁠revenue, which accounts for a third of the Pune-based company's total, rose 1.3%, while revenue at its manufacturing division - its ⁠second-largest, expanded 17.2% year-on-year.

Tech Mahindra's net new order bookings rose to $1.08 ​billion from $809 million a year earlier. The firm announced partnerships with Telefonica Germany, Microsoft and robotics platform Viam during the quarter.

Last ‌week, larger peers Tata Consultancy Services and HCLTech first-quarter results surpassed street expectations ‌on account of strong tech spending among financial services ⁠clients.

Tech Mahindra shares closed ‌1.13% higher ahead of ​the results.

($1 = 96.3450 Indian rupees)

(Reporting by Sai Ishwarbharath B and Surbhi Misra; Editing by Harikrishnan ‌Nair)

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