Tech Mahindra Q1 Results: Profit slides 16% YoY to Rs 1,132 cr; revenue up 25%

Tech Mahindra (TechM) on Monday reported a 16.4 per cent year-on-year (YoY) drop in consolidated net profit at Rs 1,132 crore compared with Rs 1,353.20 crore in the same quarter last year. The profit was in line with ET NOW analysts' poll of Rs 1,120 crore.

Revenue for the quarter came in at Rs 12,708 crore, up 24.6 per cent YoY over Rs 10,197.60 crore in the corresponding quarter last year.

Dollar revenue for the quarter stood at $1,632 million, up 1.5 per cent sequentially (or up 18 per cent YoY). In constant currency terms, revenue growth stood at 3.5 per cent quarter-on-quarter (QoQ).

Managing Director & Chief Executive Officer CP Gurnani said, "We are starting this fiscal with a renewed commitment towards delivering consistent organic growth. We remain resilient and watchful given the dynamic global macro-economic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings."

Net new deal wins for the quarter stood at $803 million, which was less than the March quarter's $1,011 million and the year-ago quarter's $815 million.

Attrition for the quarter on the last twelve-month basis fell to 22 per cent from 24 per cent in the March quarter but was higher than 17 per cent in the year-ago quarter.

Ebit margin for the quarter came in at 11 per cent compared with 13.2 per cent in the previous quarter and 15.2 per cent in the year-ago quarter.

The number of clients in the $50 million-plus bracket stood at 23, the same as last quarter. Clients in the $20 million-plus bracket jumped to 60 from 54 sequentially and in the $10 million-plus bracket to 104 from 97.

Headcount of software professionals rose 26 per cent YoY to 88,030. Sales and support and BPO professionals also jumped YoY by 28.2 per cent and 23.6 per cent, respectively.