Tech Mahindra's Consolidated Net Profit Declines by 39% in Q1

27 Jul 2023 , 01:04 AM

Tech Mahindra, an IT services provider, posted a consolidated net profit of Rs 693 crore on Wednesday, a decrease of roughly 39% from the same period in the previous year. In the previous year’s period, the company reported a net profit of Rs 1,131 crore.

Revenue was $1601 million in dollars, down 4% QoQ and 2% YoY. In constant currency (CC) terms, the revenue decreased by 4.2% sequentially.

First-quarter EBITDA decreased 29% year over year to Rs 1,338 crore.

In the reporting period, operating revenue increased by 4% year over year (YoY) to Rs 13,159 crore.

Revenue from the communications, media, and entertainment (CME) segment fell 8% year over year, while that from the business, financial, and consumer services (BFSI) segment lost 5.4%.

For the first quarter, the revenue from manufacturing and technology increased 8.6% and 8% YoY, respectively.

In comparison to the same quarter last year, the new contract wins more than halved to $359 million in the June quarter.

At the end of the June quarter, the overall headcount was 148,297, a decrease of 4,103 QoQ. As of June 2023, the company had cash and cash equivalents worth Rs 7,701 crore.

In the first quarter, voluntary attrition decreased even more, from 15% in the March quarter before and 22% in the previous quarter, to 13%.

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