Tech Mahindra Q2 Results: Profit falls 4% YoY despite rise in revenue; board approves Rs 18 dividend

Tech Mahindra on Tuesday reported a 4% year-on-year (YoY) fall in consolidated net profit for the quarter ended September 2022 to Rs 1,285 crore. That said, the bottomline was higher than the ET Now poll estimate of Rs 1,210 crore. Revenue for the said quarter increased nearly 21% on year to Rs 13,129 crore.

Sequentially, the revenue was up 3.3% and profit nearly 14%. In constant currency (CC) terms, the dollar revenue grew by nearly 3% sequentially.

Tech Mahindra’s operating profit fell 0.6% YoY to Rs 1,984 crore but rose 5.5% sequentially. Operating margin was 30 basis points higher at 15.1%.

The board has approved Rs 18 per share special dividend.

The company’s net new deal wins for the quarter was $716 million, lower than $802 million a quarter ago. The top five clients made for 19% of the total revenue in the quarter.

Similar to peers, Tech Mahindra saw attrition rate falling in the previous quarter. The 12-month trailing attrition dropped to 20% from 22% a quarter ago. Tech Mahindra’s total headcount as on September 30 stood at 163,912.

Employee cost increased 27.3% YoY and 5.3% QoQ to Rs 6,895 crore.

“While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated and new-age solutions,” C P Gurnani, MD and CEO was quoted as saying in the release.