Tech Mahindra reported an impressive 153.1% year-on-year increase in net profit for the second quarter of FY25, reaching ₹1,250 crore, well above market expectations. This marked a 46.8% sequential growth as the company continues its business restructuring under the leadership of new CEO and Managing Director Mohit Joshi. The company’s consolidated revenue for the quarter ended September 30, 2024, stood at ₹13,313 crore, representing a 3.5% year-on-year growth and a 2.4% increase on a quarter-on-quarter basis.
Cost management and higher operational efficiencies helped the EBIT margin for the Company rise 110 bps to 9.6% for the quarter under review from 8.5% during the same quarter the previous year. A Moneycontrol poll had estimated revenue for Tech Mahindra to rise 1.3% on-quarter to ₹13,171 crore whereas its net profit was seen growing by 21.7% q-o-q to ₹1,036 crore. This better-than-expected performance was supported by the fact that total contract value from deal wins in the quarter amounted to $603 million, representing growth from $534 million in Q1.
The Board of Directors, Tech Mahindra, declared an interim dividend of ₹15 per share for FY25 and fixed November 1, 2024 as the record date for determining its eligible shareholders. The company has achieved considerable gains under Project Fortius, its strategic initiative undertaken to enhance operational efficiency and expand margins for the third consecutive quarter.
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Source: Moneycontrol
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