Tech Mahindra’s profit soars 153%, revenue up 3.5% in Q2
MUMBAI, INDIA — Tech Mahindra, a technology consulting and digital solutions provider, reported a 153.1% year-on-year (YoY) increase in net profit for the quarter ending September 30, 2024.
The profit reached ₹1,250 crore (US$148 million), with revenue rising 3.5% YoY to ₹13,313 crore (US$1.58 billion). Sequentially, profit and revenue grew by 46.8% and 2.4%, respectively.
The firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also rose to US$209 million, marking a 61.4% growth YoY, with the EBITDA margin expanding by 480 basis points to 13.1%.
Strategic partnerships and new deals
During the quarter, Tech Mahindra secured new deals valued at US$603 million. Key partnerships included an AI-Ops production management deal with a major cards & payments services provider in the United States and an Autonomous Operations Program with a leading European communications service provider (CSP).
Mohit Joshi, CEO and MD of Tech Mahindra, highlighted the focus on strengthening client relationships and operational excellence through Project Fortius, which contributed to margin expansion for the third consecutive quarter.
“We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter,” he stated.
Workforce growth and operational efficiency
The company’s workforce also increased by 6,653 employees quarter-on-quarter (QoQ) to a total of 154,273. The IT attrition rate slightly rose to 10.6%.
Meanwhile, Tech Mahindra’s number of days of outstanding sales improved to 94 days, indicating enhanced operational efficiency.
CFO Rohit Anand noted the firm’s consistent performance in deal wins, revenue growth, and cost optimization as key factors driving progress toward FY27 targets.
“In line with our capital allocation policy, the board has declared an interim dividend of Rs. 15 per share,” he added.
Poor stock market response
Despite robust financial results, Tech Mahindra shares closed at ₹1,688 (US$20) on the Bombay Stock Exchange (BSE) on Friday, October 18, down by 0.68% from the previous close.
Tech Mahindra continues to leverage its technological capabilities to foster growth and innovation across various sectors, reinforcing its position as a leader in the global IT services industry.
It recently landed on the #10 spot in the OA500 2024, an objective index of the world’s top 500 outsourcing companies. This is an improvement from its 11th-place finish in the OA500 2023.
