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Tech Mahindra Ltd reported a net profit of ₹1,133 crore in the quarter ended March, down 6.6 per cent compared with the October-December quarter. Forex hedging-related charge and a one-time impact due to charges related to some contracts that the company exited, weighed on the margins.
The company reported revenue of ₹8,892 crore, down 0.6 per cent sequentially. The slowdown in enterprise business (revenue fell 2 per cent sequentially in dollar terms) was due to a fall in retail and financial services. Due to a seasonal slowdown in retail spends by clients, and some deals in the enterprise business being deferred to the new financial year, the business slowed during the quarter. However, the telecommunication business saw good momentum, growing 4.4 per cent in dollar terms.
During the quarter, Tech Mahindra reported EBITDA margins of 18.4 per cent, compared to 19.3 per cent a quarter ago. If we were to normalise for the impact of one-time items during the quarter, the margins came in at 18.7 per cent.
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