Tech Mahindra Q3 profit down 61% at Rs 510 crore in FY24
Tech Mahindra reported a 60.6% year-on-year fall in its net profit for the quarter ended December at Rs 510 crore.
The country's fifth largest software services firm cited its business rationalisation measures as well as continuing macroeconomic headwinds impacting its clients across business segments for missing profit estimates.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitTech Mahindra’s revenue for the third quarter at Rs 13,101 crore, though, was above estimates even as it dipped 4.6% on year.
On a sequential basis, profit was up 3.4% while revenue was up 1.8%.
According to an ET poll of analysts, the average estimates for the firm’s Q3 revenue was Rs 12,792 crore while its profit was expected at Rs 730 crore.
Tech Mahindra has been reporting a decline in its profit numbers for a few quarters now. It reported a steep 39% dip in net profit for the first quarter ended June followed by a 61.5% dip in Q2, led by abrupt pause in telecom demand as well as rationalisation initiatives to weed out low ROI accounts.
The company expects to announce a concrete turnaround strategy for the business, inclusive of long-term investment plans and employee policies, by April, its new chief executive Mohit Joshi said.
Joshi, who took over completely after CP Gurnani retired last month, also indicated large-scale changes across business structure, delivery models, and employee culture over the medium to long term.
The company’s performance was also impacted by the communications and media vertical, which
