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Tech Mahindra reported a net profit of Rs 1,131.6 crore, down 16.3 per cent year-on-year (YoY), for the first quarter of FY23. The profit declined 24.8 per cent on a sequential basis. The company’s revenue at Rs 12,708 crore was up 24.6 per cent from Rs 10,197 crore reported a year ago. Sequentially, its top line was up 4.9 per cent.
Higher employee and subcontractor costs impacted the operating margin performance, which came in at 14.8 per cent -- down 3.6 percentage points YoY and 2.4 percentage points quarter-on-quarter (QoQ).
Tech Mahindra’s dollar revenue for the quarter stood at $1,632 million, up 1.5 per cent sequentially (or up 18 per cent YoY). In constant currency terms, its revenue growth stood at 3.5 per cent QoQ.
Like most of its peers, Tech Mahindra beat revenue estimates but disappointed on the net profit and margin fronts. The company’s revenue beat Bloomberg estimates of Rs 12,524 crore but missed the net income estimates of Rs 1,215 crore.
The pressure was also evident on total contract value (TCV), which came in at $802 million -- down 21 per cent YoY. Sequentially, too, TCV was down by 1.6 per cent.
Higher employee and subcontractor costs impacted the operating margin performance, which came in at 14.8 per cent -- down 3.6 percentage points YoY and 2.4 percentage points quarter-on-quarter (QoQ).
Tech Mahindra’s dollar revenue for the quarter stood at $1,632 million, up 1.5 per cent sequentially (or up 18 per cent YoY). In constant currency terms, its revenue growth stood at 3.5 per cent QoQ.
Like most of its peers, Tech Mahindra beat revenue estimates but disappointed on the net profit and margin fronts. The company’s revenue beat Bloomberg estimates of Rs 12,524 crore but missed the net income estimates of Rs 1,215 crore.
The pressure was also evident on total contract value (TCV), which came in at $802 million -- down 21 per cent YoY. Sequentially, too, TCV was down by 1.6 per cent.