Tech Mahindra's Q3 Net Profit Climbs 93% YoY to ₹983.2 Crore
Strong Year-on-Year Growth
Tech Mahindra, a technology and services company under the Mahindra Group, reported a 92.63% year-on-year increase in consolidated net profit, reaching ₹983.2 crore in the third quarter of FY25. This is a significant jump from a net profit of ₹510.4 crore in Q3 of FY24. The company's consolidated revenue from operations also saw a marginal increase of 1.40%, reaching ₹13,285.6 crore in Q3FY25, compared to ₹13,101.3 crore in Q3FY24.
Sequential Decline
However, the company's performance saw a decline when compared to the previous quarter. Tech Mahindra reported a 21.35% decline in Q3FY25 PAT compared to a profit of ₹1,250.01 crore in Q2FY25. Consolidated revenue also dipped slightly from ₹13,313.2 crore in Q2FY25.
Dollar-Denominated Performance
In dollar terms, Tech Mahindra's revenue was $1,567 million, down by 1.3% QoQ and 0.4% YoY. However, when measured in constant currency terms, revenue grew by 1.2% QoQ and 1.3% YoY.
EBITDA and Cash Position
The company’s EBITDA stood at $213 million, a 2.0% increase QoQ and a 54.7% increase YoY. The EBITDA margin was 13.6%, up 40 bps QoQ and 480 bps YoY. The company also reported a strong cash and cash equivalent position at ₹6,841 crore at the end of the quarter.
Management Commentary
Mohit Joshi, Chief Executive Officer and Managing Director of Tech Mahindra, said that the company is seeing an improved rate of deal wins in key verticals and prioritized markets. He added that the consistent expansion in operating margins, despite cross-currency headwinds, reaffirms that the company is on track to achieve its long-term goals. Rohit Anand, Chief Financial Officer, noted that the company delivered growth in EBIT margin and operating PAT, both sequentially and year-on-year, due to targeted actions under Project Fortius and an increase in new deal wins. He also noted the company’s focus on optimizing working capital management.
Company Overview
Tech Mahindra provides technology consulting and digital solutions to global enterprises. With over 150,000 professionals across 90+ countries serving 1100+ clients, the company offers a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services.
On the BSE, Tech Mahindra's share price was at ₹1658.85, down by 1.81% with a market cap of ₹1,62,366.09 crore.
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