Tech Mahindra’s net profit rose by 6.8 per cent at ₹959 crore for the quarter ended June 30. It had posted profit of ₹897.9 crore in the year-ago period.
However, when compared sequentially to the fourth quarter of the previous fiscal, the profit in the first quarter is down by 15 per cent.
Revenue from operations for the quarter came in at ₹8,653 crore, up 4.6 per cent YoY, while the EBITDA slipped 3.2 per cent YoY to ₹1,314 crore. Operating margins came in at 15.2 per cent, down 120 basis points (bps) YoY. On quarter-on-quarter (QoQ) basis, revenue of the company slipped 2.69 per cent. It had posted a revenue of ₹8,892.3 crore in the March quarter.
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said: “We are encouraged to see total contract value (TCV) deal wins worth close to half a billion US dollars across Enterprise and Communications. We remain optimistic on the demand environment, evident from a very strong pipeline and deal coversions. Digital will continue to be a primary growth driver, underscoring our collaborative approach through TechMNxt platform.”
Manoj Bhat, Chief Financial Officer, Tech Mahindra said: “Business seasonality has affected revenue and margins this quarter. Our focus on automation and AI will help realise operational efficiencies as we look to accelerate growth through the year.”
No visibility on deal value
The IT services company also said that it has acquired US-based strategic design consultancy firm Mad*Pow. The company, however, did not disclose the deal size.
“Mad*Pow’s acquisition is in sync with Tech Mahindra’s global digital charter. With this collaboration, our digital footprint will take a deeper root not just in the US, but also in the wider ecosystem world over,” Gurnani said in a statement.
The acquisition is expected to help Tach Mahindra boost its capabilities in customer experience and digital transformation, user experience design, behaviour change design, content strategy, mobile app and web development, data science and analytics etc, the statement said.
Revenue from operations for the quarter came in at ₹8,653 crore, up 4.6 per cent YoY, while the EBITDA slipped 3.2 per cent YoY to ₹1,314 crore