This Wednesday IT services company Tech Mahindra reported a consolidated net profit of Rs 693 crore for the quarter ended June 2023.
Tech Mahindra Q1 Results ,Profit Drops 39% YoY to Rs 693 Crore
The results seem to be down about 39% from a year ago.
Last year, the IT major had posted a net profit of Rs 1,131 crore.
The results missed the ET Now poll estimate of Rs 1,110 crore by a wide margin.
During this period, the revenue from operations rose by 4% year-on-year (YoY) to Rs 13,159 crore.
Again it has missed as it was lower than ET Now poll estimate of Rs 13,470 crore.
The revenue stood at $1601 million in dollars, down by 2% YoY and 4% quarter-on-quarter (QoQ).
Further, the revenue dropped by 4.2% sequentially in constant currency (CC) terms.
At the same time, EBITDA fell 29% YoY to Rs 1,338 crore for the first quarter.
Uncertainty In Global Economy and IT Sector
The MD and CEO, Tech Mahindra, CP Gurnani said, “Our results this quarter reflect the uncertainty in the global economy and the IT sector.”
When considered segment-wise, the revenue from the communications, media and entertainment (CME) dropped 8% YoY.
Similarly, BFSI fell 5.4% from the previous-year period.
For the first quarter, the revenue from manufacturing and technology rose 8.6% and 8% YoY, respectively.
Coming to the new deal wins in the June quarter, it has reduced to more than half to $359 million, compared with $802 million in the last year quarter.
The CFO, Tech Mahindra, Rohit Anand said, “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.”
In total, the headcount stood at 148,297, at the end of the June quarter, down 4,103 QoQ.
At the end of June quarter 2023, the company had cash and cash equivalent at Rs 7,701 crore.
The quarter witnessed a voluntary attrition reduced to 13% in the first quarter, compared with 15% in the preceding March quarter and 22% in the last year quarter.
Gurnani noted, “We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders.”
This has affected the company’s shares, which closed 1.08% lower at Rs 1,144 on NSE in Wednesday’s trading session.
