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TechM’s Q1 net slides 16.4% to ₹1,131.6 crore

We are starting this fiscal with a renewed commitment towards delivering consistent organic growth, says C.P. Gurnani.

We are starting this fiscal with a renewed commitment towards delivering consistent organic growth, says C.P. Gurnani. | Photo Credit: The Hindu

Tech Mahindra, a digital transformation, consulting and business re-engineering services firm, on Monday, posted a 16.4% fall in its net profit for the first quarter of the fiscal at ₹1,131.6 crore.

However, revenue rose 24.6% YoY to ₹12,708 crore.

During the quarter, dollar revenue rose 18% to $1,632 million while net profit decreased 22% to $143 million.

“We are starting this fiscal with a renewed commitment towards delivering consistent organic growth,” said C.P. Gurnani, MD and CEO during a virtual press conference.

“We remain resilient and watchful given the dynamic global macro-economic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings.”‘

Tech Mahindra’s strategy rested on the pillars of ‘Purpose, People and Performance’ which was aiding the company to responsibly capitalise on the strong demand environment in the market, he added.

In his commentary on global market conditions, Mr. Gurnani said supply chain issues and other challenges may slow down the global economy, however, they won’t have any impact on the pipeline.

“My pipeline is evidently looking good because we are not chasing digital transformation deals, but business transformation piece is key to our offerings,’‘ he said.

According to Rohit Anand, Chief Financial Officer, Tech Mahindra, delivery transformation, cost optimisation and cash conversion will be key focus areas, as the company continued to offset the strong supply side headwinds in the market.

“We aim to expand our profitability through operational excellence and improved operating metrics over the course of FY’23,’‘ said Mr. Anand.

During Q1, Tech Mahindra added 6,862 people taking the total headcount to 158,035.. Its attrition for the quarter on the last 12-month basis fell to 22% from 24% in the March quarter but was higher than 17% in the year-earlier quarter.


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Printable version | Sep 7, 2022 10:27:28 pm | https://www.thehindu.com/business/techms-q1-net-slides-164-to-11316-crore/article65682171.ece