Tech Mahindra Q1 Results: Net profit declines 38% to ₹692.3 crore on weakness in key segments
Tech Mahindra Q1 Results: Tech Mahindra announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 26, reporting a decline of 38 per cent in consolidated net profit at ₹692.5 crore, compared to ₹1,131 crore in the year-ago period. The fall in the company's profit was on the back of weakness reported in its key segments. The IT major's consolidated revenue from operations during the first quarter of current fiscal stood at ₹13,159 crore, reporting a rose of 3.5 per cent, compared to ₹12,707 crore in the year-ago period.
On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the June quarter declined 28.8 per cent year-on-year to ₹1,338 crore, while Segment-wise, the company's revenue from the communications, media and entertainment (CME) dropped eight per cent year-on-year, in line with Street estimates, while that from BFSI fell 5.4 per cent from previous-year period. The revenue from manufacturing and technology rose 8.6 per cent and 8 per cent year-on-year, respectively for the first quarter. The new deal wins in the June quarter more than halved to $359 million, compared with $802 million in the last year quarter.
"This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution," said Rohit Anand, CFO, Tech Mahindra. The company's total headcount stood at 148,297, at the end of the June quarter, down 4,103 quarter-on-quarter.
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