Tech Mahindra Q2 profit rises 6% YoY to Rs 1,124 crore; but margins fall

IT firm Tech Mahindra on Tuesday posted a 5.60 per cent year-on-year rise in consolidated profit at Rs 1,123.90 crore for the quarter ended September 30. The company had posted a profit of Rs 1,064.30 crore in the corresponding quarter last year.

Analysts in an ET NOW poll had projected a profit of Rs 941 crore.

Bottomline of the company jumped 17.16 per cent on a quarter-on-quarter basis.


Consolidated revenue from operations increased 4.81 per cent on a yearly basis and 5.09 per cent sequentially to Rs 9,069.90 crore.

EBITDA decreased 7.28 per cent to Rs 1,500.90 crore. However, the figure jumped 14.20 per cent on a quarterly basis.

EBITDA margin declined 230 basis points YoY to 16.50 per cent during the quarter under review. However, the figure increased by 130 basis points on a QoQ basis.

Headcount of the Tech Mahindra increased by 5,749 to 1,31,522 sequentially.

CP Gumani, Managing Director and Chief Executive Officer, said: “Our consistent large deal win is a testimony of our differentiation in the marketplace. We are confident of our growth outlook for both communications and enterprise businesses. ‘Digital’ continues to be a strong growth driver, as we help our customers in their transformation journey. ”

In dollar terms, consolidated PAT increased 14.30 per cent QoQ to $158.60 million. Revenue advanced 3.20 per cent to $1m287.20 million.

“We have witnessed a broad based growth across geographies and across our customers. We continue to focus on margin improvement while transitioning some of the large deals in a volatile macroeconomic environment,” said Manoj Bhat, Chief Financial Officer, Tech Mahindra.