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    Tech Mahindra Q1 Results: Profit drops 39% YoY to Rs 693 crore, misses estimate by wide margin

    Synopsis

    "Our results this quarter reflect the uncertainty in the global economy and the IT sector," said CP Gurnani, MD and CEO, Tech Mahindra.

    Tech Mahindra Q1 Results: Profit slumps 39% YoY to Rs 693 crore; revenue rises 4%
    IT services company Tech Mahindra on Wednesday reported a consolidated net profit of Rs 693 crore for the quarter ended June 2023, down about 39% from a year ago. The company had posted a net profit of Rs 1,131 crore in the last year period.

    The profit missed ET Now poll estimate of Rs 1,110 crore by a wide margin.

    Revenue from operations rose by 4% year-on-year (YoY) to Rs 13,159 crore in the reporting period. This was also lower than ET Now poll estimate of Rs 13,470 crore.

    In dollar terms, revenue stood at $1601 million, down 2% YoY and 4% quarter-on-quarter (QoQ). The revenue dropped by 4.2% sequentially in constant currency (CC) terms.

    EBITDA for the first quarter fell 29% YoY to Rs 1,338 crore.

    "Our results this quarter reflect the uncertainty in the global economy and the IT sector," said CP Gurnani, MD and CEO, Tech Mahindra.

    Segment-wise, revenue from the communications, media and entertainment (CME) dropped 8% YoY, while that from BFSI fell 5.4% from previous-year period.

    The revenue from manufacturing and technology rose 8.6% and 8% YoY, respectively for the first quarter.

    The new deal wins in the June quarter more than halved to $359 million, compared with $802 million in the last year quarter.

    "This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution," said Rohit Anand, CFO, Tech Mahindra.

    The total headcount stood at 148,297, at the end of the June quarter, down 4,103 QoQ. The company has cash and cash equivalent at Rs 7,701 crore as of June 2023.

    Voluntary attrition during the quarter further fell to 13% in the first quarter, compared with 15% in the preceding March quarter and 22% in the last year quarter.

    "We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders," said Gurnani.

    On Wednesday, the company's shares closed 1.08% lower at Rs 1,144 on NSE.



    ( Originally published on Jul 26, 2023 )

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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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