IT services and consulting firm, Tech Mahindra on Wednesday clocked a net profit of ₹510 crore for the December quarter, a decline of over 60% year-on-year (YoY) from ₹1,296.6 crore in the corresponding quarter of last fiscal. The profit figure was much lower than CNBC-TV18's poll of ₹605 crore.
Sequentially, the profit increased a mere 3% from ₹494 crore in the previous September quarter.
Tech Mahindra's revenue in the third quarter fell 4.6% to ₹13,101 crore, compared to ₹13,734.6 crore in the corresponding quarter of the last year. The company's revenue in dollar terms slipped 5.7% YoY while it rose 1.1% sequentially to $1,573 million.
EBIT or earnings before interest and taxes stood at ₹703 crore as against CNBC-TV18 poll's of ₹692 crore. Margins, meanwhile, came in at 5.4 % versus our poll of 5.4%.
Earnings per share (EPS) stood ₹5.8 in the quarter under review, Tech Mahindra said in a filing to the exchanges.
"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," said Mohit Joshi, Managing Director and Chief Executive Officer at Tech Mahindra.
The IT firm also has a free cash flow of $228 million.
As per Tech Mahindra's filing, its cash and cash equivalent stood at ₹7,012 crore as of December 31, 2023.
The earnings were announced after market hours today. Ahead of the IT firm's Q3 show, the TechM stock gathered pace, rising 3% to close at ₹1,405 apiece on the NSE.
First Published: Jan 24, 2024 4:03 PM IST
