Tech Mahindra clocks 21.4 pc net profit drop at Rs 988 cr in Q3, revenue down 3.8 pc

New Delhi, Jan 17 IT and digital solutions provider Tech Mahindra on Friday reported 21.4 per cent drop in net profit at Rs 988 crore (quarter-on-quarter) in the October-December period of FY25, from Rs 1,257 crore in the same quarter last fiscal.

The company also reported 3.8 per cent decline (quarter-on-quarter) in revenue at Rs 13,300 crore, from Rs 13,835 crore in the same period last fiscal, according to its filing with stock exchanges.

Total headcount at the end of the quarter was 150,488, down 3,785 on the quarterly basis.

According to Mohit Joshi, CEO and Managing Director, Tech Mahindra, “we see an improved rate of deal wins in our key verticals and priortised markets”.

“This coupled with consistent expansion in operating margins, despite cross-currency headwinds during the quarter, reaffirms that we are on track to achieve our long-term goals,” said Joshi.

Rohit Anand, Chief Financial Officer, Tech Mahindra, said that the company delivered growth in EBIT margin and operating PAT, both on a sequential and year-on-year basis, “resulting from our targeted actions under Project Fortius, along with steady increase in new deal wins, across prioritised verticals and markets”.

“Our continued focus on optimising working capital management has resulted in generation of robust free cashflow,” Anand noted.

In the quarter, Tech Mahindra was selected by a large German Telco to support their technology domains across Network, IT, and service operations, driving autonomous operations using GenAI driving modernisation of operating technology domains through establishment of a focused operations excellence centre.

Tech Mahindra also won a managed services deal from a leading European auto-maker for supporting their IT landscape covering every aspect of their business operations by leveraging its ADMS and Cloud and Infra Services capabilities.

Source: IANS