Tech Mahindra’s net profit down 4% in Q2
IT services giant Tech Mahindra’s net profit for the second quarter of FY2023 dropped by four per cent year-on-year to Rs 1,285 crore (US$155 million) due to supply-side pressure.
On the other hand, revenue for the quarter was up 20.7% y-o-y at Rs 13,129 crore (US$1.59 billion), driven by growth in the firm’s CME (communications, media, and entertainment) vertical, as well as its operations in the US market.
Tech Mahindra CEO and Managing Director C P Gurnani said, “While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated & new-age solutions.”
The company also signed net new deals worth $716 million during the quarter. The TCV was lower than the $802 million signed in the preceding quarter and lower than the $750 million TCV signed in Q2FY22.
Tech Mahindra also saw its attrition decrease to 20% compared to last quarter’s 22%. The company added 5,877 employees in Q2, taking its total employee base to 163,912.
