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India's fifth-largest IT services company, Tech Mahindra reported a 39% growth in profits as profit for the quarter ended in March 2022 came in at Rs 1,506 crores against Rs 1,081 crores for the corresponding quarter last year. The company's profits reported beat the analysts' expectations of Rs 1,450 crores.
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The total income of the company for the quarter was Rs 12,116 crores, up 24.5% from last year as EBITDA improved 7.2% to Rs 2,088 crores but fell below estimated figures on account of higher employee costs. The dollar revenue of the company surged 21% YoY to $1.61 billion. Its Media and Entertainment vertical reported strong growth as the company saw strong demand for 5G services and Metaverse offerings.
The company said that it won a large deal for building & operating Europe's first fully cloud-native end-to-end 5G network augmenting & operating network data centers, labs & the security infrastructure. Banking, Financial Services, and Insurance saw robust growth as the vertical crossed the run rate of a billion dollars for the first time.
The company had an attrition rate of 24%, similar to last quarter's figures, as the company improved its workforce and also planned to improve campus hiring on account of rising demand.
“Our improved growth performance reflects the power of Human-Centred experiences, a strong focus on innovation, and our ability to create a strong customer and partner ecosystem. Tech Mahindra's commitment towards sustainable digital transformation and investment in new-age technology stacks has resulted in one of the highest growth with large deal wins over the last 7 years," said CP Gurnani, MD & CEO of Tech Mahindra.
The stock of Tech Mahindra has been declining since April 2022 with brief moments of relief. The stock had recently reached a low of Rs 3,346.85, a price level that the stock hadn't touched since August 2021. The stock closed at Rs 3,419.90 per share, marking a decline of 9.15% in April 2022.
Article by Aman Agarwal.
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