IT services major Tech Mahindra reported a strong deal total contract value (TCV) for the third quarter ended December 31. TCV stood at $745 million, growing nearly 95.4 percent year-on-year, driven by broad based deal wins across verticals and geographies, the management said.
In the September quarter, deal wins stood at $603 million.
According to Mohit Joshi, CEO and managing director, Tech Mahindra, the reported revenue numbers for the company got impacted in the third quarter due to currency movement-related headwinds. Adjusted for that, the company has seen strong revenue growth in communications, BFSI, life sciences and healthcare verticals. Among geographies, there have been “buckets of demands across prioritised markets of North America, Europe and APJ.”
Speaking at the company’s Q3 earnings conference, Joshi said, “This (deal wins) is not a flash in the pan. This is a sustainable trend and this shows the growing strength and growing confidence that our clients have in the tech and platform.”
“At the end of the day, this is only the first year of a multi-year journey that we are on in Tech Mahindra. But I feel very enthused by the progress that we managed to make within a fairly short period of time…We were not focused on delivering in a single quarter. We were not focused on low quality, large deal wins just to report a number. And it is very heartening for me to see the consistent progress that we made quarter after quarter,” he added.
Tech Mahindra has added 40 plus new clients in the must have accounts. Of this 12 were onboarded in December quarter itself. Nearly two dozens of these accounts have over a million dollars in annual revenue, and the company won six large deals from these accounts in FY25.
Tech Mahindra reported its Q3 earnings on January 17. Net profit stood at Rs 983 crore, up 92.6 percent on a year-on-year. 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.
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