Tech Mahindra’s net profit falls 61% to Rs 510.4 crore

IT major Tech Mahindra on Wednesday reported a 61 per cent year-on-year decline in net profit at ₹510.4 crore from ₹1,296.6 crore in the same time last year. Revenue from operations came down 4 per cent to ₹13,101.3 crore (₹13,734.6 crore) in same quarter last year.

The Q3 earnings were in line with the Street expectations as the company’s fiscal health remained impacted by seasonal factors, ongoing challenges in the communications sector and subdued discretionary expenditures in crucial markets.

‘Mixed outcome’
EBITDA for December quarter plunged 46.5 per cent year-on-year to ₹1,146 crore. Sequentially, EBITDA witnessed an increase of 6.9 per cent.

Tech Mahindra’s workforce stood at 146,250, a quarter-on-quarter decline of 4,354 employees.

Mohit Joshi, Managing Director & Chief Executive Officer, Tech Mahindra, said, “The quarter was a mixed outcome, with growth in the manufacturing and healthcare segments but muted spending in areas like communications, BFSI, and hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organisation.” The Hindu BusinessLine