Tech Mahindra on April 27 reported a consolidated net profit of Rs 1,125 crore for the March quarter of 2022-23, down 27 percent from Rs 1,545 crore it reported a year ago.
Revenue from operations came in at Rs 13,718.2 crore, flat on a sequential basis and up 13 percent year-on-year. In constant currency terms, revenue grew only 0.3 percent sequentially.
An average estimate of brokerages polled by Moneycontrol had expected the post-tax profit to rise 3 percent on a sequential basis but declined 11 percent annually to Rs 1,336 crore. Consolidated revenue, in rupee terms, was seen increasing 14 percent on-year and 0.5 percent on-quarter to Rs 13,809 crore.
The big miss came on the operating margin front. EBIT margin for the quarter was 9.6 percent against Street estimates of 12 percent.
“As we step into FY'24, we see the increasing need for businesses to stay agile by leveraging next-generation technologies. We are strongly focused on helping our customers stay competitively dominant and relevant in the era of fast-evolving market conditions” CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said.
According to its press release, the IT services company's total headcount came in at 152,400, down 4,668 from last quarter. Cash and cash equivalent stood at Rs 7,435 crore as of March 31, 2023.
“We continue to return cash to shareholders through a consistent dividend policy. We move into the next fiscal, with a sharper focus on productivity improvements, cash and value creation for our stakeholders," said Rohit Anand, Chief Financial Officer, Tech Mahindra.