Tech Mahindra Q2 Earnings: Net Profit Slips 4 Per Cent To Rs 1,285 Crore

Tech Mahindra’s overall revenue rose 20.7 per cent to Rs 13,129 crore in the second quarter of the current financial year

Tech Mahindra's Chief Executive Officer and Managing Director C P Gurnani described the market conditions as "evolving" and said that supply side challenges continue.

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Indian software services firm Tech Mahindra on Tuesday clocked a 4 per cent decline in its consolidated profit after tax at Rs 1,285 crore in the September quarter (Q2). The country's fifth-largest IT services exporter had reported a net profit of Rs 1,339 crore in the year-ago period, the PTI reported. 

Tech Mahindra’s overall revenue rose 20.7 per cent to Rs 13,129 crore in the second quarter of the current financial year. In the same period a year ago, it stood at Rs 10,881 crore, according to a statement.

The company’s earnings before interest and tax (EBIT) were at Rs 1,492 crore, up 6 percent sequentially but down 9.7 per cent YoY. EBIT margin improved 40 basis points to 11.4 per cent from the previous quarter. One basis point is one-hundredth of a percentage point.

Tech Mahindra's Chief Executive Officer (CEO) and Managing Director (MD) C P Gurnani described the market conditions as "evolving" and said that supply side challenges continue.

"While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated & new-age solutions," CP Gurnani said.

It reported a total contract value of newly signed deals at $716 million for the September quarter as against $750 million in the year-ago period and $802 million in the preceding June quarter.

The company added over 5,000 people to its headcount during the latest September quarter, taking the overall employee base to 1.63 lakh. It also reported a decline in attrition rate to 20 percent, down from 22 percent in the April-June period. The total headcount stood at 163,912.

The number of active clients at the end of the quarter stood at 1,279 compared to 1,262 at the end of the June quarter and 1,123 clients during the same period a year ago.

Shares of the Tech Mahindra closed 0.43 per cent higher at Rs 1.068.10 apiece on the BSE on Tuesday as against gains of 0.62 per cent on the benchmark.