Tech Mahindra reports QoQ revenue dip in Q1 FY24 but secures key wins
Tech Mahindra Ltd., a leading expert in digital transformation, consulting, and business re-engineering services, revealed its audited consolidated financial results for the quarter ended June 30th, 2023 (Q1 FY24).
The financial highlights for the quarter, presented in USD, showed a 4.0% QoQ decline in revenue, amounting to USD 1,601 million, and a 33.7% QoQ decrease in EBITDA at USD 163 million. The Profit After Tax (PAT) was recorded at USD 84 million, reflecting a 38.0% QoQ drop. Despite these challenges, the company managed to generate free cash flow of $106 million, with a conversion to PAT at 126%.
In Indian Rupees (₹), the revenue for the quarter was ₹13,159 crores, experiencing a 4.1% QoQ decline, and the EBITDA was ₹1,338 crores, showing a 33.8% QoQ decrease. The Consolidated PAT was ₹693 crores, down by 38.0% QoQ.
Other highlights include a total headcount of 148,297, representing a decrease of 4,103 QoQ, and Cash and Cash Equivalent of INR 7,701 crores as of June 30, 2023.
Despite the uncertainty in the global economy and the IT sector, CP Gurnani, Managing Director & Chief Executive Officer of Tech Mahindra, expressed confidence in the company’s strategy and team to overcome the temporary setback and deliver long-term value for customers and shareholders.
Amid the challenges, Tech Mahindra secured key wins and strategic partnerships in various industries. Notably, the company was selected as a strategic partner by a large telecommunications operator in America to assist in the Cloud migration of its machine learning (ML) platform and implement predictive analysis programs leveraging big data analytics and microservices development.
Additionally, Tech Mahindra will undertake a significant end-to-end enterprise process transformation for one of the largest tyre manufacturers in the world and manage the public cloud operations for a leading Networking OEM in America, including various workloads for its AI-based SaaS offerings.
Furthermore, Tech Mahindra was chosen by a large retail player in the US for Service desk management using transformative AI and bot-first technologies, and it was selected as a strategic partner by a renowned technology company to enhance AI capabilities through machine rewrites and content validation management.
Despite the economic challenges, Tech Mahindra’s strategic wins demonstrate its resilience and ability to secure transformative partnerships, paving the way for sustained growth and success in the technology industry.