Tech Mahindra Q3 Results: Revenue Grows After Two Quarters, Profit Misses Estimates
Revenue of the Pune-based IT services firm rose 1.84% from the previous three months to Rs 13,101.3 crore in the quarter ended Dec. 31.
Revenue growth at Tech Mahindra Ltd. returned after two quarters even as the company managed to recoup operational profitability.
Revenue of the Pune-based IT services firm rose 1.84% from the previous three months to Rs 13,101.3 crore in the quarter ended Dec. 31, according to an exchange filing on Wednesday. That compares with the Rs 12,801.10-crore consensus estimate of analysts tracked by Bloomberg.
Tech Mahindra Q3 FY24 Earnings Highlights (Consolidated, QoQ)
Revenue up 1.84% at Rs 13,101.3 crore (Estimate: Rs 12,801.10 crore)
EBIT up 53.83% at Rs 703.2 crore (Estimate: Rs 780.4 crore)
EBIT margin up 181 basis points at 5.36% (Estimate: 6.1%)
Net profit up 3.34% at Rs 510.4 crore (Estimate: Rs 663.3 crore)
"The quarter was a mixed outcome, with growth in manufacturing and healthcare segments but muted spending in areas like communications, BFSI, and hi-tech," Mohit Joshi, chief executive officer at Tech Mahindra, said in a statement.
"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 organisation."
Other Key Highlights (QoQ)
In dollar terms, revenue was up 1.1% QoQ at $1,573 million.
In constant currency terms, revenue was up 1.1% QoQ.
Total headcount declined 4,354 QoQ to 1,46,250 employees.
Attrition rate eased to 10% in Q3 FY24 from 11% in Q2 FY24.
Net new deal wins stood at $381 million as against $640 million.
Number of active clients reduced to 1,228 from 1,252.
On Wednesday, Tech Mahindra shares rose 3.21% to Rs 1,409.50 apiece on the BSE, even as the benchmark S&P Sensex ended the day 0.98% higher at 71,060.31 points. The quarterly results were declared after market hours.
(This is a developing story)
