Tech Mahindra Q3 result: Net profit slips 5% to Rs 1,297 crore; new deal wins at $795 million

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Tech Mahindra on January 30 reported a consolidated net profit of Rs 1,297 crore for the December quarter of the financial year 2022-23, down 5.3 percent. Profit after tax (PAT) stood at Rs 1,368 crore in the year-ago period.

The revenue from operations came in at Rs 13,735 crore, rising 19.9 percent from Rs 11,450 crore in the corresponding quarter of the previous year, the information technology services firm said in an exchange filing.

While revenue beat expectations, net profit was slightly below Street's forecast.

An average of estimates of five brokerages polled by Moneycontrol had expected PAT to rise 3.8 percent on a sequential basis but decline 0.6 percent year-on-year (YoY) to Rs 1,359 crore. Consolidated revenue, in rupee terms, was seen increasing 18 percent YoY and 3.7 percent quarter-on-quarter to Rs 13,612 crore.

EBITDA (earnings before interest, taxes, depreciation and amortisation) for the quarter came in at Rs 2,144 crore, higher by 8.1 percent sequentially and 4.1 percent YoY.

“We are witnessing moderation in growth given the tough macroeconomic environment. We will continue to work with our customers to pre-empt their technological requirements and identify, new demand drivers, especially for digital services," CP Gurnani, managing director & chief executive officer, Tech Mahindra said.

Also Read: Davos 2023 | Tech Mahindra's CP Gurnani: The way forward for IT services firms isn't negative

In constant currency terms, revenue grew by 0.2 percent QoQ (quarter-on-quarter) while the Street expected a 0.4 percent growth.

Net new deal wins for the quarter came in at $795 million, higher than $704 million in the year-ago period. IT attrition moderated to 17 percent from 20 percent in Q2 FY23 and 24 percent in Q3 FY22.

“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," Rohit Anand, chief financial officer, Tech Mahindra said.

As of December end, the total headcount for the company stood at 157,068, down 4.2 percent QoQ and up 8.3 percent YoY.

Also Read: Tech Mahindra’s total headcount down by 6,844 QoQ in Q3