Net sales (including other operating income) of Tech Mahindra has increased 4.81% to Rs 10197.6 crore.  

Operating profit margin has slumped from 20.02% to 18.40%, leading to 3.68% decline in operating profit to Rs 1,876.40 crore.  Employee cost increased from 48.26% to 50.62%.   Other expenses fell from 32.24% to 30.98%.   Software technology development services cost rose from 12.71% to 14.80%.   

Other income rose 781.29% to Rs 287.3 crore.  Provision for interest fell 8.63% to Rs 38.1 crore.  

Provision for depreciation fell 3.86% to Rs 331.1 crore.  

Profit before tax grew 16.23% to Rs 1,794.50 crore.  Provision for tax was expense of Rs 428.6 crore, compared to Rs 499.8 crore.  Effective tax rate was 23.89% compared to 32.37%.

Net profit attributable to owners of the company increased 25.13% to Rs 1,353.20 crore.  

Consolidated Quarterly Result YoY comparison

Net sales (including other operating income) of Tech Mahindra has increased 11.98% to Rs 10197.6 crore.  Sales of BPO segment has gone up 59.79% to Rs 1,181.80 crore (accounting for 11.59% of total sales).  Sales of IT segment has gone up 7.76% to Rs 9,015.80 crore (accounting for 88.41% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 44.28% to Rs 1,876.40 crore.  PBIT of BPO segment rose 402.99% to Rs 252.00 crore (accounting for 13.43% of total PBIT).  PBIT of IT segment rose 29.91% to Rs 1,624.40 crore (accounting for 86.57% of total PBIT).  

PBIT margin of BPO segment rose from 6.77% to 21.32%.  PBIT margin of IT segment rose from 14.94% to 18.02%.  Overall PBIT margin rose from 14.28% to 18.40%.  

Operating profit margin has jumped from 14.28% to 18.40%, leading to 44.28% rise in operating profit to Rs 1,876.40 crore.  Employee cost decreased from 52.77% to 50.62%.   Other expenses fell from 32.95% to 30.98%.   Software technology development services cost rose from 14.45% to 14.80%.   

Other income fell 30.95% to Rs 287.3 crore.  Provision for interest fell 24.25% to Rs 38.1 crore.  

Provision for depreciation fell 13.60% to Rs 331.1 crore.  

Profit before tax grew 39.86% to Rs 1,794.50 crore.  Provision for tax was expense of Rs 428.6 crore, compared to Rs 327.6 crore.  Effective tax rate was 23.89% compared to 25.53%.

Net profit attributable to owners of the company increased 39.18% to Rs 1,353.20 crore.  

Management Comment:

Commenting on the performance of the company, CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation. Our focus on key technology pillars wrapped around experience-led approach with TechM Nxt.Now will help us to capitalize on the strong demand momentum.

Milind Kulkarni, Chief Financial Officer, Tech Mahindra, said, We continue to build on our profitability journey and have reported highest ever quarterly Revenue and Profit After Tax this quarter. Delivery Excellence will be a cornerstonein improving our operational and financial metrics, as we look to capitalize on the incremental digital spends over the course of the year.