Tech Mahindra Q1 Results Announcement: Profit drops 39% YoY to Rs 693 crore! More Deets Inside
Tech Mahindra, one of the leading IT services companies, recently announced its financial results for the quarter ended June 2023. The company reported a consolidated net profit of Rs 693 crore, which reflects a decline of approximately 39% compared to the same period last year. In the previous year, Tech Mahindra recorded a net profit of Rs 1,131 crore. Although the net profit figures have taken a hit, Tech Mahindra’s revenue from operations saw a positive growth of 4% year-on-year, reaching Rs 13,159 crore during the reporting period. However, this figure fell short of the estimated Rs 13,470 crore as per the ET Now poll.
In terms of dollar revenue, Tech Mahindra stocks generated $1601 million, representing a 2% decline YoY and a 4% drop quarter-on-quarter. Additionally, the company also witnessed a sequential decline of 4.2% in constant currency terms.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first quarter of the fiscal year experienced a significant decline of 29% YoY, amounting to Rs 1,338 crore.
CP Gurami, the Managing Director and CEO of Tech Mahindra acknowledged the challenges faced by the company in this quarter. He stated, “Our results this quarter reflect the uncertainty in the global economy and the IT sector.”
These financial results reflect the impact of the prevailing economic uncertainties and challenges faced by the IT industry. Despite the downturn, Tech Mahindra remains committed to delivering innovative IT services and solutions to its clients. As the global economy stabilizes and the IT sector adapts to changing dynamics, Tech Mahindra aims to overcome these challenges and continue its growth trajectory.
As businesses worldwide embrace digital transformation and rely on technology to drive efficiency and growth, Tech Mahindra’s capabilities and experience will continue to be in high demand. With its customer-centric approach and focus on delivering value, Tech Mahindra is well-equipped to navigate the evolving IT landscape and emerge stronger in the future.