Tech Mahindra profit rises a flat 1.36 per cent year-on-year (YoY) rise at Rs 972.30 crore for the quarter ended June 30. It had posted a net profit of Rs 959.30 crore in the corresponding quarter last year. And consequently, beating the street estimate at Rs 760 crore.
It has beaten the street estimate and despite the COVID-19 pandemic, it has managed to have a profitable quarter. Consolidated revenue of the company increased by 5.23 per cent YoY to Rs 9,106.30 crore during the quarter under review.
However, the revenue of Tech Mahindra has fallen 3.6 per cent to $1.2 billion, which was lower than larger rivals Wipro and Tata Consultancy Services. While Wipro saw dollar revenue drop by 5.7 per cent to $ 1.91 billion. After that, TCS, India’s largest IT services firm, reported a 6.3 per cent drop in revenues to $5.06 billion. Infosys per cent grew by 1.5 per cent to $3.12 billion. While HCL Technologies saw a 0.3 per cent drop to $2.4 billion in the quarter.
Manoj Bhat, Chief Financial Officer, Tech Mahindra, said., “Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimisation. Cash conversion has been strong, while we aim to improve profitability margins as demand normalises.”
CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said, “We are witnessing a wave of new-age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation. We are well-positioned to capture such spends and our endeavour is to be back on the growth path amid increased signs of demand normalisation.”
In conclusion, it is hopeful that an increase in digitalisation is good for its balance sheet as stated by the increase in their clientele during the COVID-19 pandemic.