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.
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.