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Business News/ Companies / Company Results/  Tech Mahindra Q3 Results: Net profit falls 61% YoY to 510.4 crore, revenue at 13,101 crore
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Tech Mahindra Q3 Results: Net profit falls 61% YoY to ₹510.4 crore, revenue at ₹13,101 crore

Tech Mahindra Q3 Results: The revenue from operations of the company came down 4% year-on-year from ₹13,734.6 crore in Q3FY23 to ₹13,101.3 crore during the period under review

Tech Mahindra Q3 Results: Tech Mahindra logo is seen on its office building in Noida on the outskirts of New Delhi (REUTERS)Premium
Tech Mahindra Q3 Results: Tech Mahindra logo is seen on its office building in Noida on the outskirts of New Delhi (REUTERS)

IT major Tech Mahindra on Wednesday announced its Q3FY24 results and reported a 61% year-on-year decline in its net profits which plunged to 510.4 crore in the December 2023 quarter from 1,296.6 crore in the year-ago period. The revenue from operations of the company came down 4% year-on-year from 13,734.6 crore in Q3FY23 to 13,101.3 crore during the period under review.

The Q3 earnings for Tech Mahindra are in line with the expectations as the company's fiscal health remains impacted by seasonal factors, ongoing challenges in the communications sector, and subdued discretionary expenditures in crucial markets.

Sequentially, Tech Mahindra reported a marginal 3% rise in net profits which stood at 494 crore during the quarter ending September 2023. In terms of revenue, 2% quarter-on-quarter growth was reported from 12,864 crore in Q2FY24.

During the quarter ending December 2023, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Tech Mahindra plunged 46.5% year-on-year to 1,146 crores. Sequentially, the EBITDA witnessed an increase of 6.9%.

Attrition, EPS and more

By the end of the December quarter, Tech Mahindra's workforce stood at 146,250 which witnessed a quarter-on-quarter decline of 4,354 employees.

The basic earnings per share (EPS) of the company declined YoY from 14.70 to 5.77, while the diluted EPS declined from 14.64 to 5.76 during the quarter ending December 2023. Sequentially, the basic and diluted EPS rose from 5.59 and 5.57 during the September 2022 quarter.

"The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organization," Mohit Joshi, Managing Director & Chief Executive Officer, of Tech Mahindra, said.

“This year has given us the opportunity to step back and review our portfolio. We are confident that these actions will help us correct our course and deliver value in the long term. We are encouraged by the robust cash conversions this year, and we hope to continue this rigor in other operational areas as well," Rohit Anand, Chief Financial Officer, Tech Mahindra, said.

 

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Published: 24 Jan 2024, 04:06 PM IST
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