Connect with us

Company News

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.

Other Highlights

  • 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

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 Communications Today

error: Content is protected !!