Tech Mahindra Q1 FY25 results: Net profit rises 23% to Rs 851 crore

2 min read Last Updated : Jul 25 2024 | 4:39 PM IST

Tech Mahindra, the fifth largest IT services company, reported a net profit of Rs 851 crore for the first quarter of FY25, which grew 23 per cent year-on-year. Profit was up 28.8 per cent on a sequential basis.

Revenue for the quarter at Rs 13,005 crore was down 1.2 per cent year-on-year, but increased 1 per cent on a quarter-on-quarter basis.

The company’s revenue beat Bloomberg estimates but missed on the net profit level. Bloomberg had estimated revenue to be Rs 12,966.5 crore and net profit to be Rs 873.6 crore.

The company’s margin for the quarter came in at 12 per cent, up 190 basis points year-on-year.

Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.”

In terms of growth, communications, hi-tech and media, and banking, financial services, and insurance (BFSI) were slow and saw drops in growth by 9.9 per cent, 3.5 per cent, and 1.2 per cent year-on-year, respectively.

However, on a sequential basis, growth was broad-based with all verticals growing. Only communications were down 1.9 per cent. In terms of geography, on a year-on-year basis all the geographies were down. The US was down 0.6 per cent, Europe was down 7.3 per cent, and the rest of the world was down 2.1 per cent.

Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “The Q1 results are a positive start both for the current turnaround year as well as for our medium-term strategy. As we mentioned in our strategic priorities, our focus continues to be on investing in the business for long-term sustainable performance.”

First Published: Jul 25 2024 | 4:39 PM IST