Tech Mahindra Limited, on Monday, reported a consolidated profit after tax (PAT) of Rs 1,339 crore for the second quarter ending September 2021, which declined 1.1 percent from Rs 1,353 crore generated in the previous quarter.
On a yearly basis, the profit rose 25.8 percent from Rs 1,065 crore.
Consolidated revenue was up by 6.7 percent at Rs 10,881 crore for the quarter, corresponding to Rs 10,198 crore in June 2021 quarter. The revenue inched up by 16.1 percent YOY from Rs 9,372 crore reported in the same quarter last year.
Revenue from IT services came in at Rs 9,576 crore, up 6.2 percent on a sequential basis from Rs 9,016 crore reported in the previous quarter. On a YOY basis, IT services’ revenue increased by 13.7 percent from Rs 8,419 crore.
BPO business attracted Rs 1,306 crore, up 10.5 percent from Rs 1,189 crore reported in the previous quarter and 37.1 percent rise from Rs 953 crore reported during the prior-year period.
CP Gurnani, Managing Director & Chief Executive Officer, said, “We remain committed to delivering long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships”.
Communication, Media, and Entertainment (CME) business grew 6.7 percent QOQ while Enterprise business witnessed a growth of 6.3 percent.
America brought in 47.8 percent of total revenues and saw an increase of 8.9 percent QOQ, Europe contributed 25.9 percent and saw a rise of 1.6 percent while ROW contributed 26.3 percent to total revenues.
EBITDA for the tech firm came in at Rs 1,995 crore, up by 6.3 percent QOQ from Rs 1,876 crore and rose by 17.2 percent on a YOY basis from Rs 1,703 crore.
Net margin for the company came down by 100 bps on a sequential basis to 12.3 percent and grew by 90 bps on a yearly basis.
Milind Kulkarni, Chief Financial Officer, commented, “Our strong execution has ensured that we maintain our profit margins while accelerating growth momentum.”
He further stated, “We remain committed on the operational excellence journey we have boarded, and continue to create value to shareholders through efficient capital return.”
The company entered into strategic deals worth $750 million comparatively lower to $815 million worth deals signed in the previous quarter, but higher that $421 million worth deals signed in the corresponding quarter last year.
Ofthe total, $255 million worth of new deals were of CME business while Enterprise business brought in deals worth 495 million in this quarter.
65 new clients were added by the company in this quarter, active clients were increased to 1,123.
Gurnani added, “We continue to accelerate our clients’ digital journey by creating Human Centric Experiences, helping them gear up for tomorrow, today.”
The company also announced that it acquired Lodestone, a digital engineering quality assurance provider, in this quarter.
Vivek Agarwal, President — BFSI, HLS and Corporate Development, on this acquisition deal said, “The acquisition of Lodestone is in line with our strategy to strengthen digital capabilities and provide enhanced and comprehensive transformation services to our customers globally. This will bring significant synergies to complement our domain expertise and will help drive growth going forward”.
The employee strength of the company for the reporting quarter stood at 141,193 and 14,930 new employees joined the company in this quarter.
The company declared a special dividend of Rs 15 per equity share of Rs 5 each. The special dividend shall be transferred to accounts on November 22, 2021, with a record date of November 5, 2021.