Tech Mahindra Q1 net up 39.2% YoY to Rs 1,353 cr, revenues rises 12%

Profit rises 25% sequentially on broad-based growth across segments and verticals

Broad-based growth across segments and verticals drove Tech Mahindra’s Q1 FY22 numbers. The company reported net profit of Rs 1,353 crore for the quarter up 39.2 per cenr year-on-year, and was up 25 per cent sequentially.

Revenue for the quarter grew 12 per cent year-on-year at Rs 10,198 crore. Revenue was up 4.8 per cent sequentially. EBIDTA was down 3.7 per cent on salary hikes and higher subcontractor cost.

In US dollar terms, Tech Mahindra reported growth of 4.1 per cent QoQ at $1.3 billion.

The management called out Q1 performance as one of the highest quarterly growth run rates. “We do believe that we should be able to either maintain the current growth trajectory for the rest of the year, or better it further,” said C P Gurnani, MD and CEO Tech Mahindra.

Growth was driven across segments  like IT and BPO along with a healthy pipeline coming form 5G deployment. The TCV for the quarter was $803 million.

Attrition of the quarter was at 17.2 per cent (LTM basis). The company said that they will be hiring 3x freshers for this fiscal. At the end of the quarter, Tech Mahindra’s headcount was 126,263.