Tech Mahindra on July 25 reported its Q1FY25 net profit jumped to Rs 851.5 crore, up 23 percent year-on-year and up 29 percent on sequential basis, on low base. Consolidated revenue for the April-June quarter rose 10 percent from the preceding quarter to Rs 13,005.5 crore.
The IT services major’s fiscal first quarter results met street expectations. A Moneycontrol poll of 10 brokerages pegged Tech Mahindra’s Q1 net profit to swell to Rs 861 crore, mainly due to an exceptionally lower base in the previous quarter. Revenue was projected to rise to Rs 12,968 crore.
Tech Mahindra’s earnings during the quarter were driven by portfolio shifts, volume growth, and cost management.
The company’s EBIT margin or operating margin came in at 8.5 percent, which is an improvement of 110 bps from the previous quarter’s 7.4 percent. This was above Moneycontrol’s estimate of 8 percent.
Deal total contract value (TCV) for Q1 stood at $534 million, an increase from $500 million in the previous quarter.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, "It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27."
Rohit Anand, Chief Financial Officer, Tech Mahindra, added, "The Q1 results are a positive start both for current turnaround year as well as for our medium-term strategy. As we mentioned in our strategic priorities, our focus continues to be on investing in the business for long-term sustainable performance."
The company's headcount went up by 2,165 sequentially and it was down by 677 YoY. Total headcount stood at 147,620.
Attrition remained flat sequentially at 10 percent.
On July 25, Tech Mahindra's shares on BSE closed 0.44 percent higher at Rs 1,540 apiece.
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