Tech Mahindra’s Q2 y-o-y revenue rises 6.8% to $1.6 bn

Bengaluru: Tech Mahindra reported a 6.8% year-on-year increase in dollar revenue to $1.6 billion in the September quarter, up 2% sequentially. In constant currency terms, revenue grew 7.2% year on year and 2.4% quarter on quarter.Net profit rose 7.6% sequentially and 23.2% year on year to $166 million. EBIT margin expanded to 14.8%, up around 40 basis points from the preceding quarter and 260 basis points from the year-ago period.New deal wins stood at $1 billion in the September quarter, compared with $1 billion in the previous quarter and $816 million a year earlier.“Deal wins exceeding $1 billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built. With 7.2% year-on-year constant currency growth, we continue to sustain business momentum,” said CEO and MD Mohit Joshi.Communications, which accounted for 33.5% of revenue, grew 6% sequentially and 9.5% year on year. Manufacturing, contributing 18.2% of revenue, declined 3.9% sequentially but grew 7% year on year. BFSI grew 0.4% sequentially and 4.6% year on year, while technology, media and entertainment rose 2.8% and 6.7%, respectively.Retail, logistics and transport recorded growth of 9.6% sequentially and 9.2% year on year. Healthcare and life sciences grew 1.4% sequentially and 6.2% year on year, while the others category declined 15% sequentially and 14.1% year on year.Tech Mahindra’s headcount increased by 1,928 sequentially to 76,617, while last-twelve-month attrition stood at 11.7%.CFO Rohit Anand said, “We delivered another strong quarter of growth, with margins expanding for the twelfth consecutive quarter, reflecting disciplined execution. We continue to invest in AI to improve productivity, drive innovation and build capabilities for future growth.”He added that the board had declared an interim dividend of Rs 15 per share, reaffirming the company’s commitment to shareholders.You use AI every day. Now get your AI Quotient. Take the AIQ test.