Tech Mahindra Earned Rs 15.2 Crore/Day In Last 90 Days; Profit Up By 2.2% In Q3 2022
The IT services provider Tech Mahindra reported a weak earnings result for the December ending quarter on Tuesday. As a result, the IT stock slumped on the Indian exchanges on Wednesday.
Its consolidated profit after tax climbed 4.5% YoY and 2.2% QoQ to Rs 1,369 crore in Q3 FY22, lower than analysts’ estimates.
Investors in the stock are unimpressed with the earnings figures of the IT stock and its shares declined 1.7% to Rs 1,480.2 per piece on Wednesday.
Tech Mahindra’s Q3 Earnings
Tech Mahindra released its quarterly earnings for the October-December period on Tuesday.
Here’s a detailed listing of the same.
- The company’s consolidated net profit climbed 4.5% YoY to Rs 1,369 crore, and 2.2% on a sequential basis, missing estimates.
- Its revenue from operations gained 18.7% in Q3 at Rs 9,647.1 crore on a YoY basis, and 5.2% higher sequentially.
- The EBITDA or earnings before interest, tax, depreciation and amortisation climbed 8.7% YoY and 2.2% QoQ in Q3 to Rs 2,060 crore.
- Its EBITDA margin reduced from 19.6% in Q3 FY21 to 18% in the quarter under focus, lower than 18.3% registered in the September 2021 quarter.
- In terms of total number of employees, the company had 1,45,067 employees working in Q3 FY22, 3,874 more on a quarterly basis.
- Attrition rate in the quarter increased to 24% from 21% in Q2 and 12% in Q3 FY21.
What Does Company’s Management Have to Say?
Post the quarterly earnings’ announcement, Tech Mahindra MD and CEO CP Gurnani noted,
“Our people-first approach combined with sustained value creation this quarter reflects our commitment towards redefining possibilities and competencies in the new normal. We continue to strengthen our presence, deliver broad-based profitable growth and value for our customers, backed by future-ready talent and niche digital capabilities.”
The IT firm will continue to focus on operational efficiencies and investments, going ahead and this will lead to exponential value creation for the company in a longer run.