Tech Mahindra Q3 profits plunge 61% amid revenue decline
PUNE, INDIA — IT services and consulting firm Tech Mahindra reported a 61% year-on-year drop in Q3 net profit to $61 million, as revenue declined 5.7% to $1.57 billion.
In its latest financial report, Tech Mahindra said that ongoing economic challenges weighed on its key verticals, such as communications and banking.
Sequentially, the firm’s net profit rose by 3% while its revenue grew by 1.1% over the last quarter.
Meanwhile, its EBITDA plunged 47.1% year-on-year to $138 million but rose 7% quarter-on-quarter.
Tech Manindra CEO Mohit Joshi called it “a mixed outcome,” with growth in manufacturing and healthcare offset by muted spending elsewhere.
“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 organization,” he added.
CFO Rohit Anand added the company is “realigning under the new structure” to deliver long-term value.
Headcount and attrition both declined compared to last quarter. By the end of December, Tech Mahindra’s workforce stood at 146,250, witnessing a quarter-on-quarter decline of 4,354 employees.
