Tech Mahindra Q1 Results: Revenue, Profit Slump As IT Slowdown Bites
Revenue at Tech Mahindra fell 4.07% from the previous three months to Rs 13,159 crore in the quarter ended June 30.
Revenue growth and profit at Tech Mahindra Ltd. faltered in the first quarter of fiscal 2024, underscoring the slowdown seen in the wider Indian information technology services industry.
The Pune-based software outsourcer's revenue fell 4.07% from the previous three months to Rs 13,159 crore in the quarter ended June, according to an exchange filing on Wednesday. That compares with the Rs 13,579.2 crore consensus estimate of analysts tracked by Bloomberg.
Tech Mahindra Q1 Results: Key Highlights (QoQ)
Revenue down 4.07% at Rs 13,159 crore (Estimate: Rs 13,579.2 crore).
Net profit declines 37.5% to Rs 703.6 crore (Estimate: Rs 1,146.9 crore).
EBIT down 32.4% at Rs 891.4 crore (Estimate: Rs 1,435.9 crore).
EBIT margin at 6.77% vs. 9.60% (Estimate: 10.57%)
"This is one of the toughest quarters I have seen," Chander Prakash Gurnani, chief executive officer at Tech Mahindra, said during a post-earnings virtual media interaction. "While the drop could have been anticipated, some of the macroeconomic headwinds and stretchy dealmaking have impacted our earnings."
On Wednesday, shares of Tech Mahindra fell 0.84% to Rs 1,144.05 apiece on the BSE, even as the benchmark Sensex ended the day 0.53% higher at 66,707.20 points. The quarterly results were declared after market hours.