Tech Mahindra Q2 Result: Revenue increases 20% as net profit declines 4% to Rs 1,285 crore

A special dividend of Rs. 18 per equity share was also declared by the company.

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On November 1, Tech Mahindra announced that its consolidated net profit for the three months ended September 30 had decreased by 4% year over year to Rs 1,285 crore, above analysts’ expectations of Rs 1,224 crore.

Sequentially, net profit increased 13.6% from the June quarter’s Rs 1131.6 crore.

The combined revenue from operations for the quarter were Rs 13,129.5 crore, up 20.6 percent annually and 3.3 percent sequentially. In the same quarter of the previous fiscal year, revenue totaled Rs 10,881.3 crore.

“While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated & new-age solutions,” CP Gurnani, MD & CEO, Tech Mahindra said.

In addition to the outcomes, the corporation also announced a special dividend of Rs 18 per equity share worth Rs 5, or 360% of the face value. The record date for this corporate action is November 10, 2022.

The company’s revenue was $1,638 million in dollars, up 0.3 percent from quarter to quarter and 11.2 percent from year to year, roughly in line with analyst expectations. Revenue growth was 2.9 percent quarter over quarter when measured in constant currency.

EBIT for the quarter was Rs 1,492 crore, up 6% from the prior quarter but down 9.7% from the year before. From the previous quarter, EBIT margin increased by 40 basis points to 11.4 percent.

The communications, media, and entertainment department, which is the company’s mainstay, generated 39.7% of the overall revenues for the quarter. The manufacturing vertical provided 16 percent, followed by the IT and BFSI verticals at 10.1 and 16.3 percent each.

The corporation reported that the revenue split between the Americas and Europe was 50.8 percent for the former and 24.5% for the latter.

Total contract value, or TCV, for the quarter was $716 million, down from $750 million in the corresponding quarter last year.

At the conclusion of the quarter, the company had 1,279 active clients, up from 1,262 at the end of the June quarter and 1,123 clients during the same time last year.

The attrition rate was also stated by the corporation to have decreased to 20% from 22% between April and June. The total number of employees were 163,912.