Tech Mahindra Q2 earnings: Net profit declines 61% to ₹505 crore

The consolidated revenue from operations for Q2FY24 came in at ₹12.86 crore, compared to ₹13.12 crore year-on-year (YoY), registering a loss of 1.98 percent. On a quarter-on-quarter (QoQ) basis, the revenue for operations was down 2.20 percent. It stood at ₹13.15 crore in Q1FY24.

The total income for the quarter under review fell 2.2 percent to ₹13.12 crore, compared to ₹13.42 crore YoY. On a QoQ basis, the total income was down 1.72 percent from ₹13.35 crore in Q1FY24.

The company’s EBIT margin or operating margin came in at 4.7 percent, which is worse than the previous quarter’s 6.8 percent.

Meanwhile, total expenses incurred by Tech Mahindra rose 6.5 percent to ₹12,504.30 crore as against ₹11,740.50 crore during the year-ago period. The new deal wins (TCV) during the quarter was at $640 million.

Its total headcount stood at 150,604 at the end of the September quarter, from 163,912 at the end of the same quarter last year. 

It also announced an interim dividend of ₹12 per equity share of face value of ₹5 each. The company has fixed Thursday, November 2 as the record date for determining the members entitled to receive the interim dividend. The interim dividend will be paid on Tuesday, November 21 to equity shareholders.

Further, Tech Mahindra Board of Directors also approved the merger of its three subsidiaries – Perigord Premedia (India), Perigord Data Solutions (India) and Tech Mahindra Cerium – with itself. The merger is subject to requisite approvals.

The stock was down 1.16 percent at ₹1,141.70 on BSE on Wednesday.

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Updated: 25 Oct 2023, 04:58 PM IST