India's Tech Mahindra second-quarter revenue beats estimate

Oct 15 (Reuters) - India's ‌Tech Mahindra on ​Thursday ​beat second-quarter revenue expectations, helped by steady growth in its manufacturing and communications verticals and ‌a weak rupee.

The IT services company also said ⁠it would issue bonus shares worth up to 4.9 billion ‌rupees, the first time it ‌has done so since 2015.

Consolidated revenue rose 15.6% to 161.80 billion rupees ($1.70 billion) year-on-year. Analysts, on average, ​expected revenue of 151.95 billion rupees, as per data compiled by LSEG.

Analysts had expected Tech Mahindra to ⁠post one of the fastest revenue growth rates among large-cap IT services ​companies in the quarter, driven by large deal ramp-ups from clients including telecommunications provider Orange ​Business.

The firm reported a 32.7% year-on-year ‌rise in profit to 15.86 billion rupees, missing estimates of 17.08 billion rupees.

The communications ⁠division's revenue, which accounts for a third of the Pune-based company's total, rose 9.5% year-on-year. Revenue from its manufacturing division, its second-largest, ⁠grew 7%.

Revenue from the Tech Mahindra's banking and financial services segment, ​which the company has been pushing to expand in recent quarters, was up 4.6%.

New deal wins in the quarter stood at $1.02 ‌billion, up from $816 million in the same quarter last year.

Larger peers TCS and HCLTech reported ‌their results earlier in the month, while Wipro reported higher ⁠quarterly revenue earlier in ‌the day.

($1 = 95.0550 Indian ​rupees)

(Reporting by Abhirami G and Surbhi Misra in Bengaluru; Editing by Sonia Cheema and Jochelle ‌Mendonca)

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