Revenue in dollar terms came in at $1,573 million, up 1.1 per cent sequentially (down 5.7 per cent) YoY. In the constant currency terms,. revenue was up 1.1 per cent QoQ but down 5.4 per cent YoY.
Tech Mahindra Ltd (TechM) reported a 60.6 percent YoY decline in net profit, amounting to Rs 510 crore for the December quarter. Analysts had anticipated a profit drop of 45-52 percent for the IT firm. The BSE filing by the IT major revealed a 4.6 percent YoY decrease in revenue to Rs 13,101 crore for the quarter. This contrasted with the 5-7 percent sales drop forecasted by analysts before TechM’s results.
Revenue in dollar terms reached $1,573 million, reflecting a sequential increase of 1.1 percent (a 5.7 percent decrease YoY). In constant currency terms, revenue rose by 1.1 percent QoQ but declined by 5.4 percent YoY.
For the quarter, the Ebit margin stood at 5.4 percent. TechM reported net new deal wins of Rs 381 crore, falling short of analysts’ expectations for the IT firm to disclose a total contract value (TCV) of $400-500 million.
In the September quarter, net new deal wins amounted to $640 million, and in the year-ago quarter, it reached $795 million. As of the end of the December quarter, Tech Mahindra had 1,228 active clients, a decrease from 1,252 clients in September and 1,290 clients in the same quarter last year.
IT attrition was reported at 10 percent, down from 11 percent in September and 17 percent in the year-ago quarter. The utilization rate rose to 88 percent, compared to 86 percent in both September and the year-ago quarter. Total headcount decreased by 2.9 percent to 1,46,250 sequentially and 6.9 percent YoY. Software professionals increased to 81,705, up 0.6 percent from the September quarter’s 81,200.
Mohit Joshi, Managing Director & Chief Executive Officer, commented on the quarter, stating, “The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organization.”
Rohit Anand, Chief Financial Officer, discussed the year as an opportunity for the IT firm to review its portfolio, expressing confidence that these actions would correct their course and deliver long-term value. He added, “We are encouraged by the robust cash conversions this year, and we hope to continue this rigor in other operational areas as well.”
Users Today : 4
Users Yesterday : 8