Tech Mahindra Q1 Profit Grows 23% Despite Revenue Dip

Tech Mahindra has recorded a 23 per cent year-on-year (YoY) growth in consolidated net profit, reaching Rs 851 crore for the April-June 2024 period. 

Revenue from operations, however, saw a slight dip, down 1.2 per cent YoY to Rs 13,005 crore. Despite this decline, the revenue managed to edge up 1 per cent quarter-on-quarter (QoQ). The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw an increase, climbing 16.9 per cent YoY and 11.1 per cent QoQ to Rs 1,564 crore. This improvement brought the EBITDA margin to 12 per cent, an enhancement of 190 basis points (bps) YoY and 110 bps QoQ.

Tech Mahindra’s earnings per share (EPS) stood at Rs 9.62. The company’s cash and cash equivalents were reported at Rs 8,055 crore as of 30 June 2024.

This quarter’s results underline Tech Mahindra's strategic focus on portfolio adjustments and volume growth, contributing to enhanced profitability despite the minor revenue decline. The rise in EBITDA and net profit points to the company’s operational efficiency and strong financial standing.

In a statement, 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.”

The total headcount at the end of June 2024 was 1,47,620, reflecting an increase of 2,165 employees QoQ, though it saw a decrease of 677 employees YoY.