Tech Mahindra's revenue and profit decline for second straight quarter
Tech Mahindra Ltd. experienced a revenue and profit decline for the second quarter in a row, underscoring the slowdown in India's $245-billion IT services sector. The firm's revenue dipped 2% to Rs. 12,863.9 crore in Q2 FY24 from Rs. 13,129.5 crore in the corresponding quarter of the previous year. In Q2 FY24, the profit after tax stood at Rs. 505.3 crore, marking a 61% decrease from the Rs. 1,299.2 crore recorded in the same period the prior year.
Key highlights of Tech Mahindra's Q2 performance
The company's EBIT plunged 48.73% quarter-on-quarter (QoQ) to Rs. 457.1 crore. The EBIT margin stood at 3.55%, a decrease from 6.77% QoQ. The attrition rate decreased to 11%, and the total headcount rose by 2,307 to 1,50,604 employees. The company secured $640 million in net new deal wins during the quarter that ended in September.
Dividend announcement and record date
Tech Mahindra declared an interim dividend of Rs. 12 per equity share of Rs. 5 each, resulting in a payout of 240% of the face value. The record date for determining shareholder eligibility for the dividend is set for November 2, 2023, with the dividend payment date scheduled for November 21, 2023.
Tech Mahindra's stock performance today
On Wednesday, Tech Mahindra's shares dropped by 1.19% to Rs. 1,142.15 each on the NSE, while the benchmark Sensex closed the day down by 0.81% at 64,049.06 points. The quarterly results were announced after market hours today.
