Tech Mahindra Q1 net up 39% at ₹1,353 crore

Debangana Ghosh Mumbai | Updated on July 29, 2021

C P Gurnani, CEO   -  REUTERS

Will hire fresh talent from tier-II cities

IT services major Tech Mahindra on Thursday reported 39 per cent year-on-year increase in profit after tax at₹1,353 crore compared to ₹972 crore in the same period last fiscal. On a quarter on quarter basis, the profit was up 25 per cent.

Revenue from operations rose 12 per cent y-o-y to ₹10,198 crore (₹9,106 crore). It went up by 4.8 per cent sequentially against ₹9,729 crore in Q4FY21.

The attrition rate remained higher at 17 per cent, up from 13 per cent in the quarter ended March 2021. Total headcount stood at 126,263, with 5,209 new employee addition in the first quarter.

CP Gurnani, Managing Director and CEO, Tech Mahindra, said, “In FY22, our focus will be on hiring new talent across our technology verticals including AI, IoT, Deeptech, and Spacetech. Fresher intake will be growing by three times.”

“The hiring is largely to happen in India especially from the Tier-II cities like Visakhapatnam, Thiruvanathapuram and Nagpur,” he added.

Large deals

Gurnani said the company had strong traction of large deals during the quarter. This included a major deal with one of the largest private healthcare systems in the US as a managed service partner for technology transformation. The company will also be working with a large BPO in the UK for customer experience management.

Total net new deal wins stood at $815 million for the quarter. Of this, Communications, Media and Entertainment contributed nearly 40 per cent of the revenue, growing 12.6 per cent YoY. Manufacturing contributed16.5 per cent while BFSI contributed 16.4 per cent to the total revenue.

Largest market

America was the largest market, contributing 46.7 per cent to revenue, followed by Europe at 27.2 per cent and rest of the world at 26.1 per cent.

“We have witnessed an all-rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation. Our focus on key technology pillars wrapped around an experience-led approach with TechM Nxt. Now will help us to capitalise on the strong demand momentum,” Gurnani said.

Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said, “We continue to build on our profitability journey and have reported highest ever quarterly revenue and profit after tax this quarter. Delivery excellence will be a cornerstone in improving our operational and financial metrics, as we look to capitalize on the incremental digital spends over the course of the year.”

Published on July 29, 2021

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