>Tech Mahindra

Strong Q1 Profits Despite Challenging Times

The disruptions caused by the Covid-19 pandemic notwithstanding, Tech Mahindra has registered a 21% increase in net profit at Rs 972.30 crore for the quarter ended June 30, 2020. Revenue declined by 4.0% QoQ at Rs. 9,106 crore, while EBITDA hovered at the Rs. 1,301 crore mark, down 3.5% QoQ for the technology major.

“Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimization. Cash conversion has been strong, while we aim to improve profitability margins as demand normalizes,” Manoj Bhat, Chief Financial Officer, Tech Mahindra, said.

In USD terms, the consolidated PAT stood at USD 128.8 million, up 18.2% QoQ; while the revenue stood at USD 1,207.5 million; down 6.7% QoQ. EBITDA too registered a decline and was pegged at USD 172.4 million.

“Our customer centric approach and continued focus on keeping our associates safe and connected has helped us to navigate through these challenging times successfully. We are witnessing a wave of new-age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation. We are well positioned to capture such spends and our endeavor is to be back on the growth path amid increased signs of demand normalization,” CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said.

Marching ahead this quarter as well, Tech Mahindra recently embarked on a global strategic partnership with Hinduja Group’s CyQureX to offer world class cyber security solutions to support clients through successful digital transformation.

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