Tech Mahindra Q1 results: Net profit rises 23% to Rs 851 crore | Company Results

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Tech Mahindra, the fifth largest IT services company on Thursday reported a 23 per cent jump in its net profit for the first quarter of 2024-25, when compared to the same period a year ago.


The net profit which stood at Rs 851 crore was also up by 28.8 per cent sequentially.


Revenue for the quarter at Rs 13,005 crore was down 1.2 per cent year-on-year (Y-o-Y), but grew 1 per cent on a quarter and quarter basis.


The company’s revenue beat Bloomberg estimates, but missed on the net profit level. Bloomberg had estimated revenue to be at Rs 12,966.5 crore and net profit to be at Rs 873.6 crore.


The company’s margin for the quarter came in at 12 per cent, up 190 basis points YoY.


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.”


In terms of growth, communications, hi-tech and media and BFSI were slow and saw drop in growth by 9.9 per cent, 3.5 per cent and 1.2 per cent on a year on year basis, respectively.


However, on a sequential basis growth was broad based with all verticals growing. Only communication was down 1.9 per cent. In terms of geography, on a year-on-year basis all the geographies were down. The US was down 0.6 per cent, Europe was down 7.3 per cent and the rest of the world was down 2.1 per cent.


Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “The Q1 results are a positive start both for the 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.”




 

First Published: Jul 25 2024 | 4:39 PM IST

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