Tech Mahindra net profit down 41% in fourth quarter of FY24
Leading Indian IT services company Tech Mahindra saw a decline in both net profit and revenues due to an overall slowdown in the business.
Tech Mahindra has reported a 40.9% year-on-year (YoY) decline in net profit for the fourth quarter of FY24 as the leading Indian IT services company navigates a business slowdown.
Tech Mahindra reported a net profit of Rs 661 crore in Q4 FY24. However, on a quarter-on-quarter basis, the company saw its net profit rise by 29.5% from the quarter ended December 31, 2023.
The company earned Rs 12,871 crore in revenue in the fourth quarter—a decline of 6.2% YoY.
Tech Mahindra CEO Mohit Joshi said, “As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead….FY24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption.”
The IT services company's operating profit, or EBITDA, at the end of the fourth quarter stood at Rs 1,408 crore, which was a 30% YoY decline.
For the full fiscal year of 2023-24, Tech Mahindra registered a revenue of Rs 51,996 crore—a decline of 2.4%—while the net profit stood at Rs 2,358 crore, recording a steep decline of 51.2%.
The employee headcount at Tech Mahindra dropped by 6,945 at the end of the fourth quarter of FY24 to 145,455.
Tech Mahindra's total contract value was $500 million at the end of Q4 FY24 compared with $592 million a year ago.
Edited by Kanishk Singh