NEW DELHI: IT services firm Tech Mahindra reported a 153.1% year-on-year (YoY) jump in its consolidated net profit at Rs 1,250 crore, while its revenue also rose by 3.5% YoY to Rs 13,313 crore. 
On a sequential basis, the IT firm’s profit and revenue saw growth of 46.81% and 2.36%, respectively. 

During the quarter, the company’s PAT margin stood at 9.4%, up 280 bps QoQ, up 560 bps YoY. New deal wins TCV stood at $603 million. 

Its revenue from the communications vertical dropped 1.7% YoY while BFSI recorded a YoY growth of 4.5%. Revenues from the technology, media and entertainment vertical rose 2.4%. Communications continued to be slow with a decline of 1.7% YoY and 2.7% growth QoQ. 

Tech Mahindra’s IT attrition rate increased to 11% in Q2 compared to 10% in the previous quarter. The total headcount rose 4.5% QoQ to 154,273. 

Tech Mahindra CEO Mohit Joshi said, “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter. 

The Mahindra group firm’s net new deal win for the quarter was $603 million, down by 5.7 percent YoY, but up 12.9 percent sequentially. 

Tech Mahindra Chief Financial Officer Rohit Anand said, “This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cash flow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim dividend of Rs 15 per share.” 

The Mahindra Group company also declared an interim dividend of Rs 15 per equity share and fixed November 1 as the record date for determining eligibility of shareholders.