Tech Mahindra has reported an impressive 153.1% year-on-year (YoY) growth in its consolidated net profit for the September quarter, reaching ₹1,250 crore. The company’s revenue also saw a 3.5% YoY rise to ₹13,313 crore. The Mahindra Group company announced an interim dividend of ₹15 per share, with the record date set for November 1.
Sequentially, Tech Mahindra’s profit surged by 46.81%, while revenue increased by 2.36%. The company also highlighted new deal wins totalling $603 million, with its profit after tax (PAT) margin improving to 9.4%, up 280 basis points quarter-on-quarter (QoQ) and 560 basis points YoY.
Rohit Anand, Chief Financial Officer of Tech Mahindra, emphasized the company’s focus on deal wins, revenue growth, cost efficiency, and robust cash flow. “In line with our capital allocation strategy, we are pleased to declare an interim dividend of ₹15 per share,” he stated.
Mohit Joshi, Tech Mahindra’s CEO and Managing Director, acknowledged the ongoing challenges in the IT services sector but pointed out the company’s focus on improving client relationships and enhancing operational efficiency through Project Fortius. “This has contributed to margin growth for the third consecutive quarter,” he added.
In terms of constant currency, Tech Mahindra’s revenue grew by 0.7% QoQ and 1.2% YoY. However, the company reported a 1.7% YoY decline in revenue from its communications vertical, while the banking, financial services, and insurance (BFSI) segment saw a 4.5% YoY growth. Additionally, revenue from the technology, media, and entertainment vertical increased by 2.4%.
The company’s attrition rate in the IT sector rose to 11% in Q2, compared to 10% in the previous quarter. Overall headcount increased by 4.5% QoQ, reaching 154,273 employees.
Tech Mahindra’s shares closed at ₹1,688 on the BSE, down by 0.68% from the previous session.
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