Tech Mahindra has reported a good financial performance for the second quarter ended 30 September 2024, with a decent jump in net profit to Rs 1,250 crore, a 153.1 per cent year-on-year (YoY) increase.
This strong result comes as the company undergoes business restructuring under the new leadership, led by CEO and Managing Director Mohit Joshi. The profit also saw a 46.8 per cent sequential rise compared to the previous quarter.
Consolidated revenue for the quarter stood at Rs 13,313 crore, representing a 3.5 per cent growth YoY and a 2.4 per cent rise quarter-on-quarter (QoQ), outperforming market expectations. Tech Mahindra’s operating efficiency also improved, with the EBIT margin increasing by 110 basis points to 9.6 per cent, up from 8.5 per cent in the preceding quarter.
The company’s business growth was further highlighted by its total contract value (TCV) of deals secured during the quarter, which reached USD 603 million, showing an increase from USD 534 million in the previous quarter.
Mohit Joshi, CEO and MD, Tech Mahindra: “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter.”
In addition to these results, Tech Mahindra declared an interim dividend of Rs 15 per share, with 1 November 2024, set as the record date for determining eligible shareholders.
“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cashflow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim dividend of Rs. 15 per share,” said Rohit Anand, Chief Financial Officer, Tech Mahindra.
