TechM profit declines over high costs, beats estimates on revenue front

The big positive was the reduction in the attrition rate, which came in at 22 per cent, down from 24 per cent in Q4FY21

Tech Mahindra reported a net profit of Rs 1,131.6 crore, down 16.3 per cent year-on-year (YoY), for the first quarter of FY23. The profit declined 24.8 per cent on a sequential basis. The company’s revenue at Rs 12,708 crore was up 24.6 per cent from Rs 10,197 crore reported a year ago. Sequentially, its top line was up 4.9 per cent.

Higher employee and subcontractor costs impacted the operating margin performance, which came in at 14.8 per cent -- down 3.6 percentage points YoY and 2.4 percentage points quarter-on-quarter (QoQ).

Tech Mahindra’s dollar revenue for the quarter stood at $1,632