Tech Mahindra reported a higher-than-expected earnings in the September quarter on the back of improved revenue growth in communications, hi-tech and media, and banking, financial services and insurance verticals.
The consolidated revenue rose over 2% sequentially to Rs 13,313.2 crore in July-September against Rs 13,005.5 crore reported in the June quarter. The topline also beat Bloomberg estimates of Rs 13,211 crore.
“We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem.” Mohit Joshi, chief executive officer and managing director of the company said.
Also Read TCS Q2 Results 2024: Q2 profit rises by 5% YoY to Rs 11,909 crore, dividend announced Big deals continue to elude big 4 IT firms Tech Mahindra Q2 Earnings 2024: Date, Time and Where to Access Bank of Baroda revises fixed deposit rates: Exclusive FD offers for senior citizens!
The IT company’s operating margin, calculated as earnings before interest and tax, rose by 110 basis points quarter-on-quarter to 9.6%. The company’s management attributed this rise to cost-saving efforts under “Project Fortius” and the continued focus on operational efficiencies.
Project Fortius is a three-year plan unveiled by Tech Mahindra in April to achieve a 15% operating margin by FY27.
Meanwhile, the net profit of the company rose nearly 47% quarter-on-quarter to Rs 1,250.1 crore, also beating analysts’ expectation of Rs 1,013 crore. The sharp rise in bottomline was on the back of a whopping 260.4% sequential increase in the company’s other income at Rs 521.5 crore.
“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cashflow generation as we continue our journey towards FY27 stated targets,” Rohit Anand, chief financial officer of the company said.
Further, the company’s net new deal wins rose to $603 million in the September quarter against $534 million recorded in the June quarter. However, it was tad lower than $640 million new deals bagged in the year ago period.
Also ReadIndia’s Finance Minister Takes Tech Diplomacy Global: Major Moves in Mexico’s IT Hub!
Vertical play in Q4
India’s fifth-largest information technology company’s revenue from its largest vertical — communications — rose 2.7% sequentially in constant currency terms and fell 1.7% on a year-on-year basis.
» Read More
