Tech Mahindra Q1 earnings: Net profit rises 23%, revenue at Rs 13,005 crore

Tech Mahindra reported a 23% rise in net profit in the June 2024 quarter. Net profit climbed to Rs 851.15 crore in Q1 against Rs 692.5 crore profit in the June 2023 quarter. Revenue fell to 1.17% to Rs 13,005 crore in Q1 against Rs 13,159 crore in Q1 of the previous fiscal. Profit rose 28% on a quarter on quarter basis from Rs 661 crore. 

The earnings were announced after market hours. The stock ended flat at Rs 1530.10 against the previous close of Rs 1534.40 on BSE. Market cap of the firm fell to Rs 1.49 lakh crore.  

EBITDA rose 17% year-on-year to Rs 1,564 crore. Margins came at 12.0%, up 11O bps QoQ and 190 bps on a YoY basis. 

In dollar terms, revenue came at $1,559 million; up 0. 7% QoQ but down 2.6% YoY. Revenue declined by 1.2% YoY in constant currency terms. EBITDA climbed to $188 mn; up 10.8% on a QoQ basis. Earnings per share came at Rs 9.62 in Q1 against Rs 7.84 per share in the Q1 of the previous fiscal. 

Total headcount at the end of June 2024 quarter stood at 147,620 up 2,165 QoQ, down 677 YoY, said the IT major. Cash and cash equivalent at the end of June 2024 quarter stood at Rs 8,055 crore. 

Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, "It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27."