Tech Mahindra's Q3 FY23 net profit drops 5.3%
Tech Mahindra said its net profit declined due to lower business demand coupled with higher expenses amid the tough macroeconomic conditions.
Technology services company has reported a 5.3% decline in net profit for the third quarter of the current fiscal. The company attributed this slide to the tough macroeconomic conditions.
Tech Mahindra reported a net profit of Rs 1,297 crore for the third quarter of FY23—a 5.3% year-over-year (YoY). On the other hand, the revenues grew by 19.9% YoY for the third quarter to touch Rs 13,735 crore.
On the quarterly performance, Tech Mahindra CEO CP Gurnani said, “We are witnessing moderation in growth given the tough macroeconomic environment. We will continue to work with our customers to pre-empt their technological requirements and identity, new demand drivers, especially for digital services.”
The operating profit or EBITDA of Tech Mahindra stood at Rs 2,144 crore for the third quarter, which was a 4.1% rise on a YoY basis.
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Tech Mahindra Chief Financial Officer Rahit Anand said, “Our numbers reflect resilience as we continue to work on the expansion of operating margin. I am confident that our strategy of client centricity and agility combined with delivery-led transformation will help us create value for our customers and stakeholders alike.”
According to Tech Mahindra, the net new deal wins during the third quarter stood at $795 million when compared to $716 million in the comparable sequential quarter. A year ago, it stood at $704 million.
The total headcount of Tech Mahindra at the end of the third quarter of the fiscal stood at 157,068, which was a decline of 4.2% when compared to Q2 FY23.
Edited by Kanishk Singh
