Tech Mahindra Q2 Results: Profit Drops By Nearly A Third, Revenue Down Again

Revenue growth at Tech Mahindra Ltd. faltered for a second straight quarter in July-September period, underscoring the slowdown threat faced by India's $245-billion IT services industry.

Revenue of the Pune-based outsourcer fell 2.25% over the previous three months to Rs 12,863.9 crore in the quarter ended Sept. 30, according to an exchange filing on Wednesday. That compares with the Rs 13,244.6-crore consensus estimate of analysts tracked by Bloomberg.

Tech Mahindra Q2 FY24 Key Highlights (QoQ)

• Revenue down 2.25% at Rs 12,863.9 crore. (Bloomberg estimate: Rs 13,244.6 crore)

• EBIT down 48.73% at Rs 457.1 crore. (Bloomberg estimate: Rs 1,005.3 crore)

• EBIT margin at 3.55% vs 6.77%. (Bloomberg estimate: 7.59%)

• Net profit down 28.18% at Rs 505.3 crore. (Bloomberg estimate:Rs 799.6 crore)

• Interim dividend of Rs 12/share

The company's dollar revenue fell 2.8% to $1,555 million.

Other Key Highlights

• Attrition rate drops to 11% on a trailing 12-month basis.

• Total headcount rises 2,307 to 150,604 employees.

• Net new deal wins at $640 million in September quarter.

On Wednesday, shares of Tech Mahindra fell 1.16% to Rs 1,141.70 apiece on the BSE even as the benchmark Sensex ended the day 0.81% lower at 64,049.06 points. The quarterly results were declared after market hours.