Tech Mahindra Q1 results: Profit plunges 39% to Rs 693 crore; margin contracts sharply
Tech Mahindra said its sales for the quarter rose 3.5 per cent YoY to Rs 13,159 crore compared with Rs 12,707.90 crore in the same quarter last year.
- Jul 26, 2023,
- Updated Jul 26, 2023 4:27 PM IST
Tech Mahindra Ltd (TechM) on Wednesday reported a 38.8 per cent year-on-year (YoY) drop in net profit at Rs 692.50 crore for the June quarter compared with Rs 1,131.60 crore in the corresponding quarter last year. This is even as sales for the quarter rose 3.5 per cent YoY to Rs 13,159 crore compared with Rs 12,707.90 crore in the same quarter last year.
Revenue in dollar terms stood at $1601 million, up 4 per cent sequentially (down 1.9 per cent YoY). In constany currency terms, revenue was down 4.2 per cent sequentially and 0.9 per cent YoY.
TechM said Ebit for the quarter fell 36.5 per cent YoY to Rs 891.40 crore compared with Rs 1,403.40 crore in the year-ago quarter. Ebit margin fell sharply to 6.8 per cent against 11.2 per cent in the March and 11 per cent in the year-ago quarter.
The IT major recorded $359 million in net new deal wins, which was far lower than March quarter's $592 million and year-ago's $802 million. The trailing 12-month IT attrition fell to 13 per cent from 15 per cent in March and 22 per cent in the year-ago ago quarter. IT utilisation improved to 87 per cent from 86 per cent in March and 83 per cent in the same quarter last year.
Managing Director & Chief Executive Officer CP Gurnani said: "Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver longterm value for our customers and shareholders.
Chief Financial Officer Rohit Anand: "This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution."
Total headcount stood at 1,48,297 down 4,103 sequentially. Cash and cash equivalent stood at Rs 7,701 crore as on June 30.
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more
Tech Mahindra Ltd (TechM) on Wednesday reported a 38.8 per cent year-on-year (YoY) drop in net profit at Rs 692.50 crore for the June quarter compared with Rs 1,131.60 crore in the corresponding quarter last year. This is even as sales for the quarter rose 3.5 per cent YoY to Rs 13,159 crore compared with Rs 12,707.90 crore in the same quarter last year.
Revenue in dollar terms stood at $1601 million, up 4 per cent sequentially (down 1.9 per cent YoY). In constany currency terms, revenue was down 4.2 per cent sequentially and 0.9 per cent YoY.
TechM said Ebit for the quarter fell 36.5 per cent YoY to Rs 891.40 crore compared with Rs 1,403.40 crore in the year-ago quarter. Ebit margin fell sharply to 6.8 per cent against 11.2 per cent in the March and 11 per cent in the year-ago quarter.
The IT major recorded $359 million in net new deal wins, which was far lower than March quarter's $592 million and year-ago's $802 million. The trailing 12-month IT attrition fell to 13 per cent from 15 per cent in March and 22 per cent in the year-ago ago quarter. IT utilisation improved to 87 per cent from 86 per cent in March and 83 per cent in the same quarter last year.
Managing Director & Chief Executive Officer CP Gurnani said: "Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver longterm value for our customers and shareholders.
Chief Financial Officer Rohit Anand: "This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution."
Total headcount stood at 1,48,297 down 4,103 sequentially. Cash and cash equivalent stood at Rs 7,701 crore as on June 30.
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more