Tech Mahindra Q2 results: Revenue meets estimates

Tech Mahindra Ltd.’s second quarter revenue rose aided by deal wins.

The technology company’s consolidated revenue rose 3% sequentially to Rs 13,130 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 13,165.5-crore consensus estimates of analysts tracked by Bloomberg.

Tech Mahindra won deals worth over $716 million in the quarter ended September, compared with $802 million in the previous quarter.

The company’s net additions in the quarter stood at 5,877, taking the total headcount to 1,63,912 as of September.

Tech Mahindra Q2 Highlights (QoQ)

• Dollar revenue rose 0.3% to $1,638 million.
• Net profit rose 14% at Rs 1,285.4 crore, against the Rs 1,202.6-crore forecast.
• Operating profit rose 5% to Rs 1,468 crore, against an estimated Rs 1,505.5 crore.
• EBIT margin remained flat at 11%.
• Attrition fell to 20% in Q2 on last 12-month basis.

The IT company has also declared a special dividend of Rs 18 per share, of face value of Rs 5 apiece.

“We have taken several targeted measures to achieve operational efficiencies and ensure long-term sustainable growth,” Rohit Anand, chief financial officer, said.

The company has “improved on growth, profitability, and cashflows,” CP Gurnani, chief financial officer and managing director, said, adding that the large deal pipeline is “robust more than ever.”

The company has not yet been impacted by headwinds in Europe, but it remains cautious, he said.

Shares of Tech Mahindra closed 0.43% higher before the results were announced on Tuesday, compared with a 0.74% gain in the benchmark Nifty 50. Bloomberg