 "Tech Mahindra Q3FY25: Net profit jumps 93% to Rs 983 cr, revenue up 1.4%")
Tech Mahindra on Friday reported a 92.6 per cent leap in its consolidated net profit for the quarter that ended on December 31, 2024 (Q3 FY25) at Rs 983.2 crore compared Rs 510.4 crore reported during the same period last year.
Sequentially, however the company's net profit dropped 21.4 per cent from Rs 1,250.1 crore. The previous quarter's results were boosted by a one-time special income from the sale of assets amounting to Rs 450.2 crore.
Revenue from operations for the company rose marginally by 1.4 per cent year-on-year at Rs 13,285.6 crore from Rs 13,101.3 crore. Sequentially, however, the company saw a marginal 0.2 per cent decline in revenue from Rs 13,101.3 crore.
Commenting on the results, CEO Mohit Joshi said, “We see an improved rate of deal wins in our key verticals and priortised markets. This coupled with consistent expansion in operating margins, despite cross-currency headwinds during the quarter, reaffirms that we are on track to achieve our long-term goals.”
The earnings before interest and taxes (Ebit) margin expanded by 60 basis points quarter-on-quarter (Q-o-Q) to 10.2 per cent.
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Tech Mahindra's net new deal wins for Q3 reached $745 million, an impressive 95 per cent Y-o-Y growth.
Chief Financial Officer Rohit Anand credited the improved Ebit margin and operating profit after tax to the company's strategic initiatives under Project Fortius, as well as a steady increase in new deal wins across key verticals and markets. "Our continued focus on optimising working capital management has resulted in generation of robust free cashflow,” Anand said.
Ahead of the results, Tech Mahindra's shares closed 1.81 per cent lower at Rs 1,658.85 on the BSE.