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Profits for Tech Mahindra declined by 4 per cent year on year to ₹1,285.4 crore for the September 30 quarter. At the same time last year the IT company reported a net profit of ₹1,338.7 crore. Revenue for operations for the IT major increased by 20 per cent year on year to ₹13,129 crore in Q2FY23 from Rs 13129 crore in Q2FY22.
The EBITDA margin reported in Q2-FY23 was 15.1 per cent, up by 30 basis points.
Attrition declines, too
Attrition declined to 20 per cent for the company as it increased its total headcount by 3.7 per cent quarter on quarter approximately 163,912 associates worldwide.
New deals
The company had net new deal wins at the tune of $712 million, a decline of 10.7 per cent from the previous quarter; although the leadership maintained that the deal pipeline, especially for large deals continues to look strong.
While CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, maintained that demand continues to look strong despite of rising macroeconomic pressures; as per spokespersons, executives continue to cautiously watch demand especially in Europe- which will be facing a difficult winter without Russian gas.
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Gurnani added that the company continues to see a robust deal pipeline, especially in the States, where the deal pipeline has been the strongest in five years for digital transformation as per Gurnani.
Explaining the year on year decline in profits, Rohit Anand, Chief Financial Officer said, “Year on year profits were down due to increased cost side pressures as well as conscious investment activities. However, we have continued to show margin improvement. Europe has been impacted more than the USA on this front.”
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Sahyog initiative helps an employer to start a systematic investment plan in mutual fund on behalf of the domestic help to achieve their goal.“We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. 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,” concluded Gurnani.
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