FILE PHOTO: Tech Mahindra logo is seen on its office building in Noida on the outskirts of New Delhi, India March 7, 2019. Picture taken March 7, 2019. REUTERS/Adnan Abidi/File Photo
BENGALURU (Reuters) - India's Tech Mahindra reported a marginally lower-than-expected first-quarter revenue on Wednesday as clients tightened non-essential spending amid tariff-related uncertainty and weakness in the Americas market.
Consolidated sales at India's fifth-largest IT services firm by revenue rose 2.7% year-on-year to 133.51 billion rupees ($1.55 billion) in the June quarter.
Analysts, on average, had expected 133.83 billion rupees, as per data compiled by LSEG.
Revenue is the key metric that analysts and market participants look at in the Indian IT segment, as most companies provide annual revenue growth forecasts.
Revenue from the Americas market, which accounts for nearly half of its overall topline, fell 5.9% compared to last year.
Uncertainty around U.S. tariffs have quashed IT companies' hopes of a revival in client confidence and spending in its biggest market. A survey in May showed two in five tech executives had deferred discretionary projects.
Tech Mahindra's net new bookings rose to $809 million in the quarter from $798 million in the previous quarter and $534 million in the year-ago period.
Its net profit rose 34% in three-month period to 11.41 billion rupees, mainly on account of better operating margins, but missed estimates of 11.72 billion rupees, as per data compiled by LSEG.
Last week, bellwether Tata Consultancy Services missed revenue estimates and flagged delays in decision making and project kick-offs.
Peers Wipro and LTIMindtree report later this week.
Tech Mahindra shares listed in Mumbai closed 1.83% higher ahead of the results.
($1 = 85.9340 Indian rupees)
(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Janane Venkatraman)
