Quarterly results: Tech Mahindra, LTIMindtree and Coforge

Tech Mahindra reports 26% decline in net profit

Tech Mahindra, the IT services company and part of the Mahindra Group, has reported a 25.8% year-on-year (YoY) decline in net profit for the fourth quarter of FY23. The net profit during this period stood at Rs 1,118 crore.

The company's revenues declined by 13.2% YoY basis for the fourth quarter and reached Rs 13,718 crore. The operating profit during the period came in at Rs 2,021 crore, which was down 3.2% on a YoY basis.

“As we step into FY24, we see the increasing need for businesses to stay agile by leveraging next-generation technologies," said Tech Mahindra CEO CP Gurnani. "We are strongly focused on helping our customers stay competitively dominant and relevant in the era of fast-evolving market conditions by helping them adapt to leaner and sustainable business models.”

For FY23, Tech Mahindra reported a net profit of Rs 4,832 crore, which was a YoY decline of 13.2%, and the revenue also saw a 19.4% YoY decline to touch Rs 53,290 crore. The company's total headcount at the end of the year stood at 152,400.

LTIMindtree reports flat growth in net profit

LTIMindtree, the mid-tier Indian IT services company, reported a net profit of Rs 1,114 crore for the fourth quarter of FY23, which was a flat growth of just 0.5% year-on-year (YoY). The revenues during this period came in at Rs 8,691 crore with a YoY growth of 21.9%.

For FY23, LTIMindtree reported a net profit of Rs 4,410 crore which was an 11.7% YoY growth. The revenues during this period stood at Rs 33,183 crore with a YoY growth of 27.1%.

LTIMindtree CEO Debashis Chatterjee said, “We are pleased to report a strong FY23, with a broad-based full-year revenue growth of 19.9% in constant currency.” He further added, “Client requirements have changed over the last quarter, and we are now meeting the new requirements to deliver cost savings which are being directed to fund in-flight transformation programs.”

LTIMindtree ended the year with 728 active clients and a headcount of 84,546 employees.

Coforge reports 45% decline in net profit

Coforge Limited, a mid-tier IT services company, has reported a consolidated net profit of Rs 115 crore for the fourth quarter of FY23, which was a 45% year-on-year (YoY) decline. However, excluding the one-off expense of Rs 52 crore, the net profit grew 12.1% YoY

The revenue during this period stood at Rs 2,170 crore with a 5.6% YoY growth. For FY23, the revenue was Rs 8,015 crore, which was a YoY growth of 24.6%. The net profit for this period came in at Rs 812 crore which was a 22.7% YoY growth.

According to the company, the total order book executable over the next 12 months stands at $869 million, up 20.7% YoY. The order intake was at $301 million, while 10 new clients were added during the quarter. The employee headcount at the end of FY23 stood at 23,224.

“We believe that our performance during the quarter was marked by two key achievements. The first was a quarterly sequential US dollar growth of 5.0%. The second major landmark has been the firm crossing the $1 billion revenue mark. Our performance heading into FY24 sets us up well to deliver robust growth,” said Sudhir Singh, CEO, Coforge.

As the company reached a milestone of $1 billion in revenue, the company gifted Apple iPads to each of its 21,000 employees. For FY24, the firm issued an annual revenue growth guidance of 13-16% in constant currency terms and expects a gross margin increase of about 50 basis points.