Synopsis
Tech Mahindra reported a significant net profit decrease of 21.4% at Rs 988 crore in Q3 FY25, alongside a 3.8% revenue decline. Despite headwinds, the company remains optimistic about deal wins and operational growth.Key Takeaways
- 21.4% drop in net profit to Rs 988 crore.
- 3.8% decline in revenue to Rs 13,300 crore.
- Total headcount reduced by 3,785 to 150,488.
- Focus on Project Fortius driving growth.
- Secured key contracts with a German Telco and European automaker.
New Delhi, Jan 17 (NationPress) IT and digital solutions provider Tech Mahindra announced a net profit drop of 21.4%, amounting to Rs 988 crore (quarter-on-quarter) for the October-December period of FY25, compared to Rs 1,257 crore in the same quarter of the previous fiscal year.
The company also registered a 3.8% decline (quarter-on-quarter) in revenue, totaling Rs 13,300 crore, down from Rs 13,835 crore in the same timeframe last year, as per their filing with stock exchanges.
By the end of the quarter, the total workforce stood at 150,488, reflecting a reduction of 3,785 from the previous quarter.
According to Mohit Joshi, CEO and Managing Director of Tech Mahindra, “we see an improved rate of deal wins in our key verticals and prioritized markets.”
“This, along with consistent growth in operating margins despite cross-currency challenges during the quarter, confirms that we are on track to meet our long-term objectives,” Joshi added.
Rohit Anand, Chief Financial Officer of Tech Mahindra, mentioned that the company achieved growth in EBIT margins and operating PAT, both sequentially and year-on-year, due to targeted initiatives under Project Fortius, coupled with a steady rise in new deal wins across prioritized verticals and markets.
“Our ongoing focus on optimizing working capital management has resulted in substantial free cash flow generation,” Anand emphasized.
During this quarter, Tech Mahindra secured a significant contract with a major German telecommunications company to enhance their technology sectors across Network, IT, and service operations, fostering autonomous operations through GenAI and modernizing operational technology domains by establishing a dedicated operations excellence center.
Moreover, Tech Mahindra successfully acquired a managed services agreement from a leading European automaker to support their IT infrastructure, encompassing all facets of their business operations by leveraging its ADMS and Cloud and Infrastructure Services capabilities.
