Tech Mahindra Q2 FY24 financial highlights: revenue and profit analysis

Dive into Tech Mahindra‘s Q2 FY24 financial results. A detailed analysis of revenue, profit, and key business updates for the quarter ended September 30, 2023.

Revenue for Tech Mahindra in Q2 FY24 stood at USD 1,555 million, marking a 2.8% decline QoQ and 5.1% decline YoY. The EBITDA was recorded at USD 129 million, down by 20.5% QoQ and 47.3% YoY. The Profit After Tax (PAT) was USD 59 million, reflecting a drop of 29.3% QoQ and 62.5% YoY.

In terms of INR, the revenue was ₹12,864 crores, which saw a reduction of 2.2% QoQ and 2.0% YoY. The EBITDA was ₹1,072 crores, down by 19.9% QoQ and 46.0% YoY. Consolidated PAT was at ₹494 crores, marking a 28.7% decline QoQ and 61.6% YoY. The EPS stood at ₹5.6, with the board approving an interim dividend of Rs. 12 per share.

Personnel and Cash Assets Details

The total headcount for the company increased by 2,307 QoQ, reaching 150,604 by the end of the quarter. The cash and cash equivalent as of September 30, 2023, was INR 6,515 crores.

Insights from Tech Mahindra Leadership

CP Gurnani, MD & CEO of Tech Mahindra, shared his thoughts: “The year is being characterized by a challenging demand environment and prolonged macro uncertainties calling for a very tactical approach. We have doubled down our strategy of working closely with clients, helping them to streamline and modernize operations as they reprioritize their resources.”

Rohit Anand, CFO, remarked: “We have taken actions to reduce exposure to non-core areas of business. These actions will, over time, help us improve our financial performance and enable long term sustainable growth. A consistent dividend payout reinforces our commitment towards creating value for our shareholders.”

Major Business Wins for Tech Mahindra in Q2 FY24

Tech Mahindra secured various significant contracts this quarter, including partnerships with a US-based e-commerce giant, a leading EU-based Fintech, a global consumer healthcare company, and an EU-based telco, among others.

Business and Partnership Announcements

A range of business highlights were shared, from the appointment of Atul Soneja as the COO to partnerships with companies like Google, IFS, Surance.io, and Anyverse. Tech Mahindra also inaugurated an innovation center in Finland, focusing on R&D and collaboration with the local ecosystem.