Tech Mahindra Q2 Results: Profit Drops By Nearly A Third, Revenue Down Again
The company's revenue was down 2.25% quarter-on-quarter to Rs 12,863.9 crore in Q2 FY24.
Revenue growth at Tech Mahindra Ltd. faltered for a second straight quarter in July-September period, underscoring the slowdown threat faced by India's $245-billion IT services industry.
Revenue of the Pune-based outsourcer fell 2.25% over the previous three months to Rs 12,863.9 crore in the quarter ended Sept. 30, according to an exchange filing on Wednesday. That compares with the Rs 13,244.6-crore consensus estimate of analysts tracked by Bloomberg.
Tech Mahindra Q2 FY24 Key Highlights (QoQ)
Revenue down 2.25% at Rs 12,863.9 crore. (Bloomberg estimate: Rs 13,244.6 crore)
EBIT down 48.73% at Rs 457.1 crore. (Bloomberg estimate: Rs 1,005.3 crore)
EBIT margin at 3.55% vs 6.77%. (Bloomberg estimate: 7.59%)
Net profit down 28.18% at Rs 505.3 crore. (Bloomberg estimate:Rs 799.6 crore)
Interim dividend of Rs 12/share
The company's dollar revenue fell 2.8% to $1,555 million.
Other Key Highlights
Attrition rate drops to 11% on a trailing 12-month basis.
Total headcount rises 2,307 to 150,604 employees.
Net new deal wins at $640 million in September quarter.
On Wednesday, shares of Tech Mahindra fell 1.16% to Rs 1,141.70 apiece on the BSE even as the benchmark Sensex ended the day 0.81% lower at 64,049.06 points. The quarterly results were declared after market hours.
