Tech Mahindra, the fifth biggest IT services business, recorded a net profit of Rs 851 crore for the first quarter of FY25, up 23% year on year. Profit increased 28.8 percent on a sequential basis. Revenue for the quarter was Rs 13,005 crore, down 1.2 percent year on year but up 1 percent quarter on quarter.
The company's sales exceeded Bloomberg projections but fell short of its net profit target. Bloomberg estimates sales at Rs 12,966.5 crore and net profit at Rs 873.6 crore. The company's quarterly margin was 12%, up 190 basis points from the previous year.
Mohit Joshi, Chief Executive Officer & Managing Director at Tech Mahindra, stated, "It is great to see good momentum in various industry verticals, which has resulted in revenue growth and margin improvement in an otherwise seasonally difficult quarter. We are focused on execution and are on track to meet our fiscal year 27 targets." Communications, high-tech and media, and banking, financial services, and insurance (BFSI) all had moderate growth, with year-on-year growth rates of 9.9 percent, 3.5%, and 1.2%, respectively.
However, on a sequential basis, growth was widespread, with all verticals expanding. Only communications were down 1.9%. On a year-over-year basis, all geographies decreased. The United States fell 0.6%, Europe dropped 7.3%, and the rest of the globe fell 2.1%.
Rohit Anand, Chief Financial Officer of Tech Mahindra, stated, "The Q1 results represent a promising start for both the current turnaround year and our medium-term plan. As stated in our strategic goals, our primary emphasis remains on investing in the business to ensure long-term sustainable success."
Tech Mahindra, the fifth biggest IT services business, recorded a net profit of Rs 851 crore for the first quarter of FY25, up 23% year on year. Profit increased 28.8 percent on a sequential basis. Revenue for the quarter was Rs 13,005 crore, down 1.2 percent year on year but up 1 percent quarter on quarter.
The company's sales exceeded Bloomberg projections but fell short of its net profit target. Bloomberg estimates sales at Rs 12,966.5 crore and net profit at Rs 873.6 crore. The company's quarterly margin was 12%, up 190 basis points from the previous year.
Mohit Joshi, Chief Executive Officer and Managing Director at Tech Mahindra, stated, "It is great to see good momentum in various industry verticals, which has resulted in revenue growth and margin improvement in an otherwise seasonally difficult quarter. We are focused on execution and are on track to meet our fiscal year 27 targets."
Communications, high-tech and media, and banking, financial services, and insurance (BFSI) all had moderate growth, with year-on-year growth rates of 9.9 percent, 3.5%, and 1.2%, respectively.
However, on a sequential basis, growth was widespread, with all verticals expanding. Only communications were down 1.9%. On a year-over-year basis, all geographies decreased. The United States fell 0.6%, Europe dropped 7.3%, and the rest of the globe fell 2.1%. Rohit Anand further stated, "The Q1 results represent a promising start for both the current turnaround year and our medium-term plan. As stated in our strategic goals, our primary emphasis remains on investing in the business to ensure long-term sustainable success."
