TechM Q1 results: Net profit jumps 34% to Rs 1,141 crore; what management says

Tech Mahindra (TechM), a part of the Mahindra Group, on Wednesday reported a 34 per cent year-on-year (YoY) rise in net profit at Rs  1,140.60 crore for the June quarter compared with Rs 851.50  crore in the same quarter last year. The IT firm said its revenue for the quarter grew 2.7 per cent YoY at Rs 13,351 crore. Ebit for the quarter came in at Rs 1,477 crore, up 34 per cent YoY. 

TechM said its dollar revenue for the quarter stood at $1,564 million, up 1 per cent QoQ and up 0.4 per cent YoY. Revenue in constant currency (CC) terms fell 1.4 per cent QoQ and 1 per cent YoY. Ebit margin stood at 11.1 per cen t, up 50 basis points QoQ. For the quarter, new deal-wins stood at $809 million, up 51 per cent YoY, TechM said in a stock exchange filing. The total number of $50 mn-plus clients stood at 26, up 2 YoY.

TechM said its free cash flow stood at $86 million and that free cash flow-to-PAT percentage came in at 111 per cent on LTM (last twelve months) basis. 

The global consulting service and systems integrator that operates in over 90 countries said its headcount stood at 79,987 at the end of June quarter, down 622 QoQ and 430 YoY. The IT services attrition (LTM) came in at 12.6 per cent against 11.8 per cent last quarter.

What TechM management says

Mohit Joshi, CEO and Managing Director, Tech Mahindra, said, “Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44 per cent on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements.”

Tech Mahindra provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services