Tech Mahindra announced that its consolidated net profit for the September quarter increased by 153.1% year on year (YoY) to Rs 1,250 crore, while revenue increased by 3.5% YoY to Rs 13,313 crore.
Profit and revenue increased sequentially by 46.81% and 2.36%, respectively.
While announcing the quarterly results, the Mahindra Group company declared an interim dividend of Rs 15 per equity share and set November 1 as the record date for determining shareholders' eligibility.
During the quarter, the PAT margin was 9.4%, up 280 basis points sequentially and 560 basis points year on year. The total value of new deal wins was $603 million.
"This quarter, we saw sustained success in terms of rising transaction wins, revenue growth, cost optimization, and stable free cash flow generation as we continued our approach toward FY27 stated targets. "In accordance with our capital allocation policy, the board has declared an interim dividend of Rs. 15 per share," stated Rohit Anand, Chief Financial Officer of Tech Mahindra.
The company's CEO and MD, Mohit Joshi, stated that the broader IT services business has remained soft. "We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter," according to him.
In constant currency terms, Tech Mahindra's revenue increased 0.7% quarter on quarter and 1.2% year on year.
In the second quarter, Tech Mahindra's IT attrition rate rose to 11% from 10% in the first quarter. The overall headcount increased to 154,273 (a 4.5% QoQ increase).
The communications business saw a 1.7% YoY decline in revenue, whilst BFSI saw a 4.5% YoY increase. The technology, media, and entertainment category saw a 2.4% increase in revenue.
Tech Mahindra's stock fell 0.68% from its previous finish to close at Rs 1,688 per share on the BSE on Friday.
