Tech Mahindra reports 13% QoQ jump in PAT due to tight control over costs

IT services company Tech Mahindra reported a 13% sequential jump in its net profit despite modest growth, after it was able to keep costs almost static.

Revenue in rupee terms rose 2.2% on quarter. Translated to dollars, it was up 2.5%. Year on year, revenue was up 2.9% in rupee terms and 8.3% in dollar terms.

Net profit jumped to Rs 943 cr from Rs 836 cr in the preceding quarter and Rs 856 cr in the year-ago quarter.

Operating profit (EBITDA) margin rose 1.8 percentage points on quarter to 16.3% of sales.

Vineet Nayyar, Vice Chairman, Tech Mahindra, said the results demonstrated the impact of excellent execution “in an otherwise unpredictable macro business environment.”

C P Gurnani, CEO & MD, said the company’s focus on new-age areas such as digital and automation “yielded marquee deals” during the quarter.

“I am confident we will continue to deliver connected experience across markets and industries we serve,” he added.

Tech Mahindra is part of the USD 19 billion Mahindra Group that employs more than 200,000 people in over 100 countries.

Tech Mahindra’s operational details are given in the charts below.

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