夜上海论坛

Tech Mahindra Q2 Results: Profit plunges 61.6% on-year to Rs 493.90 crore, revenue falls to Rs 12,863.90 crore

on Leave a Comment on Tech Mahindra Q2 Results: Profit plunges 61.6% on-year to Rs 493.90 crore, revenue falls to Rs 12,863.90 crore

IT major Tech Mahindra on Wednesday posted profit for the quarter ended September 2023 at Rs 493.90 crore, down 61.6 per cent in comparison to Rs 1285.40 during the corresponding quarter of FY23, missing estimates. It posted revenue from operations at Rs 12,863.90 crore, down 2 per cent as against Rs 13,129.50 crore during the second quarter of FY23. The company EBIT stood at Rs 606.6 crore. According to a CNBC TV18 poll, Tech Mahindra was expected to post the quarter profit at Rs 663 crore and revenue at Rs 13,113 crore.

The total income recorded during the second quarter of FY24 was at Rs 13,128.10 crore, down 2.2 per cent from Rs 13419.70 crore during the same quarter last year. Meanwhile, total expenses incurred by Tech Mahindra was at Rs 12,504.30 crore, up 6.5 per cent as against Rs 11,740.50 crore during the year ago period. The new deal wins (TCV) during the quarter was at $640 million.

Further, Tech Mahindra Board of Directors also approved the merger of its three subsidiaries – Perigord Premedia (India), Perigord Data Solutions (India) and Tech Mahindra Cerium – with itself. The merger is subject to requisite approvals. The merger is planned in order to consolidate and effectively manage the business of the Transferor Companies and Transferee Company in a single entity, which will provide several benefits including synergy, economies of scale, attain efficiencies and cost competitiveness, it is intended that the Transferor Companies be merged with Transferee Company, the company said.

Tech Mahindra Q2 performance across business verticals

Tech Mahindra’s IT business vertical recorded Q2 revenue at Rs 10,932.20 crore and its BPO segment posted a revenue of Rs 1931.70 crore. Its communications, media and entertainment (CME) business currently account for nearly 37 per cent of the company’s revenue. The manufacturing business contribute to 17.8 per cent of the revenue, technology at 11 per cent, Banking, Financial services & Insurance vertical account for 16.1 per cent and Retail, Transport & Logistics segment bring in 8.2 per cent of company revenue.

Tech Mahindra’s employee count

Tech Mahindra’s total headcount stood at 150,604 at the end of the September quarter, from 163,912 at the end of the same quarter last year. The company has cash and cash equivalent at Rs 6515 cr as of September 30, 2023.

This is CEO and MD CP Gurnani’s last quarter earnings and he will retire on December 19, 2023 and Mohit Joshi, CEO designate will take over from 20th December 2023.