Tech Mahindra revenue rises, other indicators drop in June quarter
MUMBAI, INDIA — Multinational IT services and consulting firm Tech Mahindra registered a 3.5% year-on-year growth in its revenue for the quarter ending in June, reaching ₹13,159 crores (US$1.59 billion).
However, other financial indicators showed a downturn. The EBITDA, at ₹1,338 crores (US$162.69 million), dropped by 33.8% QoQ and 28.8% YoY. The firm’s consolidated PAT was also down by 38% in both QoQ and YoY to ₹693 crores (US$84.26 million). EPS fell to ₹7.82 (US$0.95), while the company’s workforce decreased by 4,103, totaling 148,297.
Tech Mahindra Managing Director and CEO CP Gurnani said their current financial results reflect the uncertainty in the global economy and the IT sector. However, he remains optimistic and believes this is only a “temporary setback” for the firm.
Meanwhile, CFO Rohit Anand assured stakeholders that the firm has already taken “swift and decisive actions to address these issues and improve our execution.”
Tech Mahindra unveiled several strategic collaborations during the quarter, involving a major American telecommunications operator, a global tire manufacturer, and a leading American networking OEM. These alliances will utilize Tech Mahindra’s proficiency in big data analytics, process overhaul, and AI-driven SaaS solutions.
Noteworthy business developments within the firm include a Microsoft partnership for AI-powered Enterprise Search, collaboration with Espressive for AI-driven virtual support, a Google Cloud-powered Center of Excellence lab launch with IndoSat, and the introduction of Generative AI studio within Tech Mahindra’s services.
