The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper

    Tech Mahindra Q3 a 'milestone': Key takeaways


    ​CEO C P Gurnani termed the quarterly performance as a "milestone".

    Sequentially, profit grew 13 per cent. The results came in after market hours.

    Related Companies



    Information technology player Tech Mahindra on Tuesday posted a 28 per cent year-on-year growth in consolidated net profit at Rs 1,203 crore for the December quarter.

    Sequentially, profit grew 13 per cent. The results came in after market hours.

    CEO C P Gurnani termed the quarterly performance as a "milestone". The stock settled flat at Rs 750 on the BSE on Tuesday.

    Here are the key third quarter earnings highlights from Tech Mahindra.

    • Top line picks up: Revenue for the quarter rose 15 per cent YoY to Rs 8,944 crore, the IT major said in a BSE filing. In dollar terms, revenue jumped 4.3 per cent YoY and 7.8 per cent QoQ to $1,260.80 million.

    • Margin gets a lift: Ebitda margins of the IT firm came in at 19.3 per cent, up 300 basis points (bps) YoY and 50 bps QoQ.

    • EPS: Tech Mahindra's earnings per share (EPS) was Rs 13.55 for the quarter through December.

    • CEO-speak: “This is a milestone quarter for Tech Mahindra with 5 billion dollars annual revenue run rate in sight. The current quarter has been impressive on all fronts, delivering steady growth in Enterprise and Communications business along with margin expansion. Our Run, Change and Grow strategy has helped us deliver a strong 10% sequential growth in digital revenues. We are confident of continuing the growth momentum,” said C P Gurnani, Managing Director and CEO, Tech Mahindra.

    • Key order win: The software exporter won a key contract from one of the largest banks in the ANZ region for digital channel integration across core banking processes and asset finance.

    • Attrition: Employee attrition stood at 21 per cent in Q3 in comparison with 20 per cent in Q2. Total headcount read 1,21,842, up 3,451 on a QoQ basis.

    • The 5G push: Tech Mahindra and Rakuten Mobile Network have teamed up to build world-class, next generation (4G & 5G) Software Defined Network laboratories. This lab will be one of its kind in the industry, which will help create next generation of mobile broadband, enabled by 5G, and transformation of industries across the globe.

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Also Read

    1 Comment on this Story

    Niveza Equity Research662 days ago
    Tech Mahindra stock has been surged in line with latest quarterly revenue declaration. The company has reported Consolidated Net Profit of Rs. 1206.8 Crore along with acceleration in Total income , on YoY basis. The healthy stock offers exceptionally high TTM based EPS at Rs. 42.06 along with P/E of 17.82x for the same period. The stock also offers exceptionally good ROE and ROCE of 22.06% and 24.29% respectively, based on 5 years performance. Search Google for NIVEZA FREE Share Market Tips today.
    The Economic Times