Tech Mahindra Q2 results: Revenue meets estimate, margin remains flat
Tech Mahindra Ltd.’s quarterly revenue rose meeting estimates, helped by acquisitions and growth in enterprise and communication segments.
The information technology company’s revenue increased 7% sequentially to Rs 10,881.30 crore in the quarter ended September, its exchange filing showed. That compares with the Rs 10,662.50-crore consensus estimate of analysts tracked by Bloomberg.
Other Highlights (QoQ)
- Net profit declined 1% to Rs 1,338.70 crore, against the Rs 1,358.3-crore forecast.
- Revenue in U.S. dollar increased 6.4% to $1,472.6 million. Analysts had pegged the metric at $1,421.70 million.
- Earnings before interest and tax increased 7% to Rs 1,652.20 crore.
- EBIT margin remained flat at 15.18%, offset by higher talent cost. The consensus estimate was at 15.16%.
“We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships,” CP Gurnani, managing director and chief executive officer, said in the statement.
- Net new deal wins of $750 million.
- Free cash flow at $187.9 million.
- Cash and cash equivalent at $1,626 million.
- Total headcount at 1,41,193, up 14,930 quarter-on-quarter.
Meanwhile, Tech Mahindra has declared a special dividend of Rs 15 apiece and fixed Nov. 5 as the record date for determining the members entitled to receive the special dividend.
Shares of Tech Mahindra closed 0.44% higher before the earnings were announced, compared with a 0.06% rise in the benchmark Nifty 50. Bloomberg
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