Results for Tech Mahindra’s First Quarter: On July 26, Tech Mahindra released its April-June quarter results for the fiscal 2023–24 year (Q1FY24), reporting a fall of 38% in consolidated net profit to 692.5 crore from 1,131 crore in the same quarter last year. The company’s profit decreased as a result of deterioration seen in some of its core business divisions.
The IT giant’s consolidated revenue from operations during the first quarter of the current fiscal year totaled 13,159 crore, up 3.5% from the same time a year earlier.
The company’s profits before interest, taxes, depreciation, and amortization (EBITDA) decreased by 28.8% year over year to 1,338 crore in the June quarter.
According to street estimates, the company’s revenue from the communications, media, and entertainment (CME) segment decreased 8% from the prior-year quarter, while that from the business services industry (BFSI) decreased 5.4%.
For the first quarter, the revenue from manufacturing and technology increased year over year by 8.6% and 8%, respectively. In comparison to the same quarter last year, the new contract wins more than halved to $359 million in the June quarter.
“This quarter was difficult for us as revenue growth encountered significant challenges that impacted profitability. To address these problems and strengthen our execution, we have moved quickly and decisively, according to Tech Mahindra CFO Rohit Anand.
At the conclusion of the June quarter, the corporation had 148,297 total employees, a decrease of 4,103 from the previous quarter. As of June 2023, the corporation had cash and cash equivalents worth 7,701 crore. Compared to the prior January-March quarter of fiscal 2022–23 at 15% and the same time last year, the voluntary attrition during the quarter further decreased to 13% in the first quarter.
“The unpredictability in the global economy and the IT sector is reflected in our results this quarter. According to CP Gurnani, Managing Director & Chief Executive Officer of Tech Mahindra, “We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders.”
Tech Mahindra shares ended today’s trading session 0.84 percent lower at 1,144.05 per share on the BSE, ahead of the release of Q1FY24 earnings results.
