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Tech Mahindra Q1 Results: Revenue Meets Estimates, Profit Falls 25%

Tech Mahindra won deals worth over $802 million in the April-June period.

<div class="paragraphs"><p>An employee holds a cup as she works at her desk inside the Tech Mahindra office building in Noida. (REUTERS/Adnan Abidi)</p></div>
An employee holds a cup as she works at her desk inside the Tech Mahindra office building in Noida. (REUTERS/Adnan Abidi)

Tech Mahindra Ltd.'s revenue rose in the first quarter, aided by deal wins.

The technology company's consolidated revenue rose 5% sequentially to Rs 12,707.9 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 12,524.4-crore consensus estimates of analysts tracked by Bloomberg.

Tech Mahindra Q1 Highlights (QoQ)

  • Dollar revenue rose 1.5% at $1,632 million.

  • Net profit fell 25% at Rs 1,131.6 crore, against Rs 1,215.7-crore forecast.

  • Operating profit fell 12.5% at Rs 1,403.40 crore, against estimated Rs 1,514.5 crore.

  • EBIT margin stood at 11% compared with 13% as of March.

  • Attrition fell to 22% in the Q1 on last 12-month basis.

Tech Mahindra won deals worth over $802 million in the April-June 2022 period.

The company’s net additions in the quarter stood at 6,862, taking the total headcount to 158,035 as of June.

Shares of Tech Mahindra closed 1.43% lower before the results were announced on Monday, compared with a 0.53% fall in the benchmark Nifty 50.