Tech Mahindra Q1 Results: Net Profit Jumps 23 Per Cent To Rs 851 Crore

Tech Mahindra Q1 Results: Tech Mahindra’s workforce grew by 2,165 employees, bringing the total headcount to 1.47 lakh. However, this marks a year-on-year decline of 677 employees

Mohit Joshi, MD & CEO designate of Tech Mahindra at the announcement of the company's second quarter results, in Mumbai.

Source : PTI

IT services company Tech Mahindra announced a 23 per cent increase in its consolidated profit after tax, reaching Rs 851 crore for the June 2024 quarter. Despite a 1.2 per cent year-on-year (YoY) decline in revenue to Rs 13,005 crore, the company reported a 1 per cent quarter-on-quarter revenue increase. Operating profit margins also improved, widening by 1.90 per cent to 12 per cent.

Tech Mahindra’s workforce grew by 2,165 employees, bringing the total headcount to 1.47 lakh. However, this marks a year-on-year decline of 677 employees. Attrition remained steady at 10 per cent sequentially.

The total contract value (TCV) for Q1 stood at $534 million, up from $500 million in the previous quarter. In terms of growth, communications, hi-tech and media and BFSI were slow and saw drop in growth by 9.9 per cent, 3.5 per cent and 1.2 per cent on a year on year basis, respectively.

The company’s revenue beat Bloomberg estimates, but missed on the net profit level. Bloomberg had estimated revenue to be at Rs 12,966.5 crore and net profit to be at Rs 873.6 crore.

Commenting on the results, Mohit Joshi, Chief Executive Officer and Managing Director of Tech Mahindra, said, "It is encouraging to see positive momentum in most industry verticals, leading to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27."

Rohit Anand, Chief Financial Officer, added, "The Q1 results are a positive start both for the current turnaround year and our medium-term strategy. As outlined in our strategic priorities, our focus remains on investing in the business for long-term sustainable performance."

On July 25, Tech Mahindra's shares on BSE closed 0.44 per cent higher at Rs 1,540 apiece.