On Wednesday, Tech Mahindra Ltd. (TechM) revealed that its net profit for the December quarter was Rs 510 crore, a 60.6% YoY decrease. Analysts had predicted a 45–52% decline in the IT company's profit. This quarter's revenue dropped 4.6% YoY to Rs 13,101 crore, according to a BSE filing by the big IT company. This contrasted with a 5-7% decline in sales predicted by analysts prior to the TechM report.

Dollar-wise, revenue was $1,573 million, up 1.1% sequentially but down 5.7% year over year. In terms of constant currency,. Revenue decreased 5.4% YoY but increased 1.1% QoQ.

The quarter's EBIT margin was 5.4 percent. The IT company reported net new deal wins for the quarter of Rs 381 crore. Analysts had anticipated that the IT company will disclose a total contract value (TCV) of between $400 and $500 million.

In the September quarter, net new deal wins were $640 million, compared to $795 million in the same quarter last year. Compared to 1,252 clients in September and 1,290 clients in the same quarter last year, Tech Mahindra reported having 1,228 active clients at the end of the December quarter.

The percentage of IT attrition was 10%, compared to 11% in September and 17% in the same quarter last year. The utilization rate was 88%, which was higher than 86% in September and 86% in the same quarter last year. The overall headcount decreased 2.9% YoY to 1,46,250, both sequentially and annually. Software occupations increased 0.6% to 81,705 from 81,200 in the September quarter.

"The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech," stated Mohit Joshi, Managing Director and Chief Executive Officer. Although the markets will need time to reconcile this contradiction, we are internally concentrating on realigning under the new framework and fortifying our organization's core values."

According to Chief Financial Officer Rohit Anand, the year has allowed his IT company to take a step back and assess its portfolio. "We are sure that by taking these steps, we will be able to change our direction and eventually provide value. The strong cash conversions this year have encouraged us, and we intend to maintain this rigor in other operational areas as well," he stated.

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