Tech Mahindra Q3 PAT grows 21% to Rs 1,290 cr

The IT major's consolidated net profit jumped 21.35% to Rs 1,290.10 crore on 2.93% rise in net sales to Rs 9,647.10 crore in Q3 December 2020 over Q2 September 2020.

Consolidated profit before tax (PBT) soared 21.8% to Rs 1,716.40 crore in Q3 December 2020 as against Rs 1,409.30 crore in Q2 September 2020. Current tax expense for the quarter surged 14.36% to Rs 474.60 crore as against Rs 415 crore in Q2 September 2020. The Q3 result was declared after market hours yesterday, 29 January 2021.

EBITDA grew 11.3% to Rs 1,896 crore in Q3 December 2020 over Q2 September 2020 while margins stood at 19.6%, recording a growth of 140 bps Q-o-Q (quarter-on-quarter).

In USD ($) terms, revenues stood at $1,308.70 million in Q3 FY21, up 3.4% quarter-on-quarter and down 3.3% year-on-year. Revenue growth stood at 2.8% Q-o-Q in constant currency terms. EBITDA was at $257.20 million, registering a growth of 11.8% Q-o-Q. PAT jumped 23.7% Q-o-Q to $177.70 million in Q3 FY21. Free cash flow stood at $226 million during the quarter.

CP Gurnani, the managing director (MD) and chief executive officer (CEO) of Tech Mahindra, said: "The technology modernization cycle continues to gather pace and our positioning of creating Experiences through Nxt.Now has seen us gain significant traction in the market place. We believe that the Future is Now and we are continuously innovating to address this shift in spending."

Manoj Bhat, the chief financial officer (CFO) of Tech Mahindra, has stated that: "Our focus on operational excellence has again yielded results as we structurally change our delivery model. We are seeing consistent improvement in our operating metrics and we are confident of continuing on this transformation journey in the coming quarters."

Total headcount fell by 2,357 to 1.21 lakh in Q3 December 2020 over Q2 September 2020. Cash & cash equivalent at $1,625 million as of 31 December 2020.

Shares of Tech Mahindra declined 2.13% to end at Rs 961.65 on Friday. Tech Mahindra is engaged in the business of computer programming, consultancy and related services.

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