The consolidated net profit of Tech Mahindra declined 61  per cent year-on-year in the second quarter of FY24. The IT major reported a net profit of ₹493.9 crore in the September 30 quarter this year; the IT company had reported a net profit of ₹1,285 crore in the same period last year.

Revenue from operations declined 2 per cent year-on-year to ₹12,863 crore from the ₹13,129 crore reported in the same quarter last year. Along with its financial result, Tech Mahindra Ltd also announced an interim dividend of  ₹12 per equity share of face value of  ₹5 each on Wednesday.

Attrition rate dropped to 11 per cent on a trailing 12-month basis. Total headcount rose 2,307 to 150,604 employees. Net new deal wins at $640 million in September quarter.

During the management commentary, outgoing CEO CP Gurnani noted that the the past two quarters have been the “the most difficult ones” in the past few years. Gurnani called it a tough quarter not just because of the tech slowdown faced by the market overall — Tech Mahindra’s 5G bet is also not playing out as expected. 

“I thought we were poised for writing some of the technology investments, particularly 5G. And I don’t think it was strong enough for 5G. At that moment, and you know, somehow some of our customers have had to stop their capital expenditure,” he said

EBITDA margin was reported to be 8.3 per cent, declining 1.9 per cent quarter on quarter.. As per management commentary, margins are expected to decline in the subsequent quarter as well. 

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