Dividend Paying Mahindra Stock In Focus After Q3: TechM Earns Profit Of Rs 510 Crore

Even though Mahindra Group-backed IT flagship company, Tech Mahindra reported decline on year-on-year basis, its sequential performance was better than estimated. In Q3FY24, Tech Mahindra earned a consolidated net profit of Rs 510 crore, which was down by a massive 60.6% YoY but climbed by 3.4% QoQ.

Further, in Q3FY24, Tech Mahindra posted an EBITDA of Rs 1,146 crore, down by 46.5% YoY but up by 6.9% QoQ. Meanwhile, its earnings per share stood at Rs 5.8.

Consolidated revenue from operations was at Rs 13,101 crore, down by 4.6% YoY but up by 1.8% QoQ. Cash and cash equivalent stood at Rs 7,012 crore as of December 31, 2023.

In dollar terms, PAT was down by 61% YoY but up by 3% sequentially to $61 million. EBITDA dropped by 47.1% YoY but surged by 6.4% QoQ to $138 million. Further, margins expanded by 40 bps sequentially to 8.8%. In the top-line front, revenue dipped by 5.7% YoY but was marginally up by 1.1% QoQ to $1,573 million. In constant currency, revenue was up by 1.1% QoQ and down by 5.4% YoY.

Mohit Joshi, Managing Director & Chief Executive Officer, Tech Mahindra, said, The quarter was a mixed outcome, with growth in the Manufacturing and Healthcare segments but muted spending in areas like Communications, BFSI, and Hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organisation."

Further, Rohit Anand, Chief Financial Officer, Tech Mahindra, said, "This year has given us the opportunity to step back and review our portfolio. We are confident that these actions will help us correct our course and deliver value in the long term. We are encouraged by the robust cash conversions this year, and we hope to continue this rigour in other operational areas as well."

Tech Mahindra offers innovative and customer-centric digital experiences, enabling enterprises, associates, and society to Rise for a more equal world, future readiness, and value creation. It is a USD 6.5+ billion organization with 146,000+ professionals across 90 countries helping 1250+ global customers, including Fortune 500 companies.

On BSE, Tech Mahindra's share price stood at Rs 1407.75 apiece, up by 3.09% with a market cap of Rs 1,37,421.59 crore.