Tech Mahindra profits dip 16% YoY to ₹ 1,132 Crore as revenue rises 25%

The fifth-largest IT exporter in the nation, the Mahindra Group company, reported a net profit of Rs 1,353 crore during the last 12-month period.

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On Monday, Tech Mahindra (TechM) announced a 16.4% year-over-year (YoY) decline in its consolidated net profit, which fell to Rs. 1,132 crore from Rs. 1,353.20 crore in the same quarter previous year. The quarter’s revenue was Rs 12,708 crore, up 24.6% YoY from Rs 10,197.60 crore during the same quarter last year.

According to the Tech Mahindra’s exchange report, operating profit fell 9.2% to Rs 1,403.4 crore. And the operating profit margin shrank to 11% from 15.2% in the prior-year period.

It increased its headcount to 1.58 lakh during the quarter by adding 6,862 new employees.

Tech Mahindra Q1 Results

Managing Director & Chief Executive Officer Tech Mahindra CP Gurnani said. “We are starting this fiscal with a renewed commitment towards delivering consistent organic growth. We remain resilient and watchful given the dynamic global macro-economic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings.”

Dollar revenue for the quarter was $1,632 million, an increase of 1.5% over the prior period (or up 18 per cent YoY). Tech Mahindra’s revenue growth for the most recent quarter was 3.5% in constant currency (QoQ).

Overall new deal gains for the quarter was $803 million, which was lower than the quarters in March ($1,011 million) and 2014 ($815 million).

On a 12-month basis, turnover for the quarter dropped from 24% in the March quarter to 22%, but it was still higher than the quarter-ago at 17%.

Ebit margin for the quarter was 11%, down from 13.2% in the prior quarter and 15.2% in the same period last year.

There were 23, which is the same as the previous quarter, of clients with $50 million or more in revenue. Clients with $20 million or more in revenue increased from 54 to 60 consecutively, and those with $10 million or more increased from 97 to 104.

Software professionals now number 88,030, a 26% YoY increase. Professionals in BPO, sales, and support increased by 23.6 percent and 28.2 percent, respectively, year over year.

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