DBT Bureau
Bengaluru, 25 July 2024
Tech Mahindra posted better than expected first quarter results on the back of strong cost savings measures and improved performance in BFSI and communication vertical.
In Q1, Tech Mahindra posted a CC (constant currency) revenue growth of 0.7% in sequential term at $1.55 billion.
Net profit of the mid-tier firm increased 21.3% to $102 million during April-June period. Its operating margin expanded by over 100 basis points to 8.5% from 7.35% reported in the previous quarter.
Its deal pipeline improved to $534 million, which was an increase of 7% over the previous quarter.
“It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.” Mohit Joshi, CEO of Tech Mahindra said in a statement.
Communication vertical, which contributed 33% to total revenue, witnessed a decline of 1.9% in sequential term. Company’s management informed in a post earnings press conference that the decelerating trend is slowing down and the telecom business is showing some improvement.
The Mumbai-headquartered company’s retail vertical grew by 5.2%, while the manufacturing vertical saw a growth of 2.4%. Healthcare grew 7.9% QoQ, and BFSI vertical was up 0.7% during the quarter.
The company’s net headcount improved to 147,620, an addition of 2,165 employees over the previous quarter.
