Tech Mahindra Q3 Results: Net Profit Soars 93% YoY to ₹983 Crore, Revenue Rises to ₹13,286 Crore
IT services giant Tech Mahindra reported a 93% year-on-year (YoY) increase in its consolidated net profit for the October-December quarter of the current fiscal, reaching ₹983 crore compared to ₹510 crore in the same period last year. However, the net profit declined by 21% sequentially from ₹1,250.1 crore in the previous quarter.
Tech Mahindra Q3 FY25 Results: Key Highlights
Tech Mahindra announced its financial results for the third quarter of FY25 on January 17. The results showcased notable year-on-year profit growth despite sequential declines.
- Net Profit: Consolidated net profit surged 92.63% YoY to ₹983.2 crore, up from ₹510.4 crore in the same period last year. However, on a sequential basis, profit declined by 21% from ₹1,250.1 crore in Q2 FY25.
- Revenue: Revenue rose 1.4% YoY to ₹13,286 crore but saw a marginal sequential dip of 0.2%
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased significantly by 57.8%, reaching ₹1,809 crore, compared to ₹1,146.5 crore in Q2 FY25.
Sectoral Performance
- The manufacturing sector recorded a YoY decline of 7.2% and a QoQ drop of 3.7%.
- The BFSI (Banking, Financial Services, and Insurance) segment grew by 8.3% YoY and 0.4% QoQ.
Operational Highlights
- Deal Wins: CEO and MD Mohit Joshi highlighted an improved rate of deal wins in key verticals and markets, along with consistent operating margin expansion, despite cross-currency headwinds.
- Headcount: Total employee count stood at 146,250 at the end of Q3 FY25, marking a reduction of 3,785 employees compared to the previous quarter.
Market Reaction
- Shares of Tech Mahindra closed 1.78% lower at ₹1,657.65 on the NSE on January 17. The company’s market capitalization was ₹1,62,248.64 crore as of 4 PM.
- The results indicate steady progress in revenue and operational efficiency, despite challenges in specific sectors and a sequential decline in profits.