Business

Tech Mahindra Q2 profit drops 5% to ₹1,065 crore

Tech Mahindra Ltd.’s net profit declined 5% to ₹1,065 crore for the second quarter ended September 30, from the year-earlier period, while revenue increased 3.3% to ₹9,372 crore.

The board has proposed a special dividend of ₹15.

In U.S. dollar terms, revenue dipped 1.7% to $1,265.4 million. The company reported free cash flow of $235.7 million.

‘Demand revival’

In a statement, the IT services company said its U.S. and emerging markets businesses did ‘well’ while the European business was ‘headed for revival’. Active clients stood at 988 and the company had cash and cash equivalents worth $1,564 million as of September.

During the quarter, the firm had initiated a three-pronged strategy to achieve its growth objectives.

“Our Repair, Rally and Rise strategy has helped the company to emerge stronger, as we journey towards a post COVID-19 world,” said MD and CEO C.P. Gurnani.

“We are witnessing demand revival across multiple segments, as customers have accelerated their pace of digital transformation,” Mr. Gurnani added.

“Our focus on creating human-centered experiences will enable us to capture increased spends on consumerisation, as businesses try to stay relevant in the current environment,” he added.

“Strong execution on both revenue growth and operational metrics has helped to improve our performance on all fronts [QoQ]”. said Manoj Bhat, chief financial officer, Tech Mahindra.

“Our cash conversion continues to be robust and we remain committed towards creating value for our shareholders through effective capital return.”

As on September 30, 2020 the company had a total headcount of 124,258, up 842 from the previous quarter.

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Printable version | Nov 27, 2020 11:49:27 AM | https://www.thehindu.com/business/tech-mahindra-q2-profit-drops-5-to-1065-crore/article32932760.ece

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