Tech Mahindra posted a net profit of Rs 983 crore, up 92.6 percent on year-on-year (YoY) basis for the third quarter ended December 31, 2024, driven by IT sector’s seasonal weakness due to holidays and furloughs.
Sequentially, net profit declined 21.36 percent. The decline in profit is due to a higher base reported in previous quarter, that came from a one-time special income from sale of assets. In Q2, the company recorded net profit of Rs 1,250 crore, aided by the sale of a property for Rs 450.2 crore.
Revenue for the quarter increased 1.4 percent YoY coming in at Rs 13,285 crore. Sequentially, revenue declined 0.21 percent.
The company has missed both net profit and revenue estimates. According to a Moneycontrol poll of nine brokerages, Tech Mahindra was expected to post a sequential decline in net profit to Rs 1,051 crore. Revenue from operations was estimated to see 0.3 percent increase to Rs 13,355 crore
Tech Mahindra Q3 Preview: To deliver muted growth amid weak seasonality, high base
Ebit margin or operating margin grew 60 bps QoQ to 10.2 percent in Q3, beating Moneycontrol’s estimates.
Net new deal wins in Q3 grew over 95 percent YoY to $745 million.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “We see an improved rate of deal wins in our key verticals and priortised markets. This coupled with consistent expansion in operating margins, despite cross-currency headwinds during the quarter, reaffirms that we are on track to achieve our long-term goals.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “We delivered growth in EBIT margin and operating PAT, both on a sequential and year-on-year basis, resulting from our targeted actions under Project Fortius, along with steady increase in new deal wins, across prioritised verticals and markets. Our continued focus on optimising working capital management has resulted in generation of robust free cashflow.”
On January 17, Tech Mahindra's shares on BSE closed 1.81 percent lower at Rs 1,658.85 apiece.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
