Tech Mahindra reports Q3 PAT of Rs 1,297 cr

On a consolidated basis, the IT major's net profit rose marginally to Rs 1,296.6 crore in Q3 FY23 as against Rs 1,285.4 crore posted in Q2 FY23.

Revenue from operations grew 4.61% quarter on quarter (QoQ) to Rs 13,734.6 crore in quarter ended 31 December 2022.

On a year on year (YoY) basis, Tech Mahindra's net profit declined 5.25% while revenue jumped 19.94% in Q3 FY23.

EBITDA stood at Rs 2,144 crore in Q3 FY23, up 8.1% QoQ and up 4.1% YoY. EBITDA margin was at 15.6% in Q3 FY23 as against 15.1% in Q2 FY23 and 18% in Q3 FY22.

In terms of dollars (USD), revenue was at $1,668.3 million in Q3 FY23, growing 1.8% QoQ and 8.8% YoY. Revenue growth stood at 0.2% QoQ and 12.7 YoY in constant currency terms. EBITDA was at $260.2 million, up 6% QoQ and down 5.9% YoY. EBITDA margin stood at 15.6%, up 50 bps. Profit after tax was at $157 million, down 1% QoQ and down 14.4% YoY. Free cash flow was at $31 million, conversion to PAT at 20%.

The IT firm secured net new deals worth $795 million in Q3 FY23 as against $716 million in Q2 FY23 and $704 million in Q3 FY22.

Total headcount was at 157,068 down 4.2% QoQ. The last twelve month (LTM) IT attrition rate reduced to 17% in Q3 FY23 from 20% in Q2 FY23 and 24% in Q3 FY22.

Cash and cash equivalent stood at Rs 6,449.4 crore as of 31 December 2022, compared with Rs 7,703.2 crore as of 30 September 2022 and Rs 10,003.8 crore as of 31 December 2021.

CP Gurnani, managing director & chief executive officer of Tech Mahindra, said, We are witnessing moderation in growth given the tough macro economic environment. We wilI continue to work with our customers to pre-empt their technological requirements and identijj, new demand drivers, especially for digital services.

Rahit Anand, chief financial officer of Tech Mahindra, 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 & agility combined with delivery led transformation wi/I help us create value for our customers and stakeholders alike.

Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

Shares of Tech Mahindra rose 0.58% to close at Rs 1,036.15 on the BSE.

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