Tech Mahindra Q3 results: Net profit up 4.5% to Rs 1,369 crore

Tech Mahindra on Tuesday reported a 4.5 per cent year-on-year (YoY) rise in its consolidated net profit for October-December quarter at Rs 1,369 crore. On a quarter-on-quarter (QoQ) basis, profit was higher by 2.2 per cent.

The company's revenue rose 18.7 per cent YoY and 5.2 per cent QoQ to Rs 11,451 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.7 per cent YoY and 2.2 per cent QoQ to Rs 2,060 crore.

EBITDA margin contracted to 18 per cent during the quarter under review from 19.6 per cent in the year-ago quarter and 18.3 per cent in the preceding quarter.

Tech Mahindra's headcount stood at 1,45,067 at the end of December quarter, up 3,874 QoQ. Attrition rate was at 24 per cent during the quarter as against 21 per cent in the preceding quarter and 12 per cent in the year-ago quarter. 

The company said its cash and cash equivalent stood at $134.58 crore as of December 31, 2021.

Commenting on the results, Tech Mahindra MD and CEO CP Gurnani said, ""Our people-first approach combined with sustained value creation this quarter reflects our commitment towards redefining possibilities and competencies in the new normal. We continue to strengthen our presence, deliver broad-based profitable growth and value for our customers, backed by future-ready talent and niche digital capabilities."

The company continues to transform its operations and add new capabilities. Its focus on operational efficiencies and investments for the future will help drive exponential value creation in the long run, CFO Milind Kulkarni said.

Shares of Tech Mahindra closed 1.87 per cent higher at Rs 1,507.05 on the BSE on Tuesday.

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