Tech Mahindra Q3 Results: IT major beats analysts' estimates with 5% revenue growth, 80 bps margin expansion
Tech Mahindra Q3 Results: The IT major reported a 0.9 per cent sequential increase in net profit to Rs 1,296.6 crore for the October-Decemeber period, in line with analysts' estimates.
Tech Mahindra — India's fifth largest IT services company by sales — on Monday reported a 0.9 per cent sequential increase in net profit to Rs 1,296.6 crore for the quarter ended Decemeber 2022, in line with analysts' estimates.
The IT major's revenue came in at Rs 13,734.6 crore for the third quarter of the current financial year, up 4.6 per cent compared with the previous three months, according to a regulatory filing.
According to Zee Business research, Tech Mahindra's quarterly net profit was estimated at Rs 1,300 crore and revenue at Rs 13,500 crore.
Tech Mahindra said its revenue, in dollar terms, grew 1.8 per cent to $1,668 million compared with the previous quarter. In constant currency terms, the company's revenue growth stood at 0.2 per cent.
The IT firm's dollar revenue was estimated at $1,641 million and constant currency revenue growth at 0.4 per cent, according to Zee Business research.
“We are witnessing moderation in growth given the tough macro economic environment. We wiill continue to work with our customers to pre-empt their technological requirements and identify new demand drivers, especially for digital services,” said CP Gurnani, Managing Director and CEO, Tech Mahindra.
Tech Mahindra's margin — a key measure of profitability — improved by 80 basis points to 12 per cent on a quarter-on-quarter basis. The Zee Business analysts had pegged the margin at 11.7 per cent.
The company's total headcount reduced 4.2 per cent to 1,57,068 compared with the previous quarter, according to a company statement.
Tech Mahindra shares ended higher by Rs 6 or 0.6 per cent at Rs 1,036.2 apiece on BSE, as against a 0.3 per cent rise in the Sensex benchmark.
The stock grew 0.8 per cent in value in the October-December period, in which headline indices Sensex and Nifty50 gained 5.9 per cent each.
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