Tech Mahindra said it reported a 92.6% year-on-year growth in net profit at Rs 983 crore for the third quarter of FY25, overcoming seasonal variables such as holidays and furloughs in the IT sector. Sequentially, the profit went down by 21.36%, mainly on account of the fact that the previous quarter saw a one-time gain from asset sales at Rs 450.2 crore.
Revenue for the quarter rose 1.4 percent YoY at Rs 13,285 crore but registered a marginal sequential decline of 0.21 percent. The company missed analyst estimates as a Moneycontrol poll of brokerages had estimated a net profit of Rs 1,051 crore and revenue of Rs 13,355 crore.
Highlights:
- EBIT Margin: Operating margin improved 60 basis points (bps) quarter-on-quarter to 10.2%, surpassing market estimates.
- New Deal Wins: Net new deals grew 95% YoY to $745 million, signaling strong business momentum.
- Operational Focus: The company’s Project Fortius initiative contributed to margin expansion and operational efficiencies, as highlighted by CFO Rohit Anand.
CEO Mohit Joshi expressed optimism about the improved deal win rates across key verticals and prioritized markets. He stated that despite currency headwinds, the company is on track to meet its long-term goals. CFO Rohit Anand emphasized the focus on cash flow optimization, which resulted in robust free cash generation.
On January 17, Tech Mahindra’s shares closed 1.81% lower at Rs 1,658.85 apiece on the BSE.
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Source: Moneycontrol
News Desk
