Tech Mahindra Q3 profit down 5% YoY on weak macro environment; revenue jumps 20%

Tech Mahindra has reported an almost 5% slump in quarterly profit on Monday, hit by weak macro economic environment. The Mahindra group company released its numbers post market hours today.

The information technology services company’s consolidated net profit came in at 1,296.6 crore, down 5% YoY for the quarter ended 31 December, 2022. The company had posted 1,368.5 crore profit in the year-ago period.

Tech Mahindra’s revenue from operations came in at 13,734.6 crore for the third quarter under review, up 20% year-on-year and 4.6% quarter-on-quarter.

The IT company has reported an EBITDA (earnings before interest, tax, depreciation and amortisation) at 2,144 crore, up 8.1% QoQ and 4.1% on-year.

Total expenses jumped almost 25% to 12,202 crore.

However, the Pune-based company’s total deal wins rose to $795 million in the third quarter from $704 million a year earlier, pushing its revenue from operations 20% higher to 13,735 crore.

The company’s total headcount stands at 157,068, down 4.2% 000.

CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said, «We are witnessing moderation in growth given the tough macro economic environment. We will continue to work with our customers to pre-empt their technological requirements and identify, new demand drivers, especially for digital services.»

«Our numbers reflect resilience as we continue to work on the expansion of operating margin. I am confident that our strategy of client centricity & agility combined with delivery led transformation will help us create value for our customers and stakeholders alike,» said Rahit Anand, Chief Financial Officer at Tech Mahindra.

On Monday, Tech Mahindra shares rose 0.88% to settle at 1,039.20 apiece on the NSE. The stock fell fell 43.2% last year against the Nifty IT’s 26% fall.

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