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Revenue from operations increased 20% YoY to Rs 13,735 crore. According to an ET Now poll, the net profit was estimated at Rs 1,245 crore. The topline was higher than the estimated 13,490 crore.
Sequentially, the net profit rose about 1% and the revenue by nearly 5%. Dollar revenue was up 1.8% sequentially at $1.67 billion.
In constant currency terms, sales grew 0.2% sequentially, and were largely on expected lines. Operating profit, calculated as earnings before interest, taxes, depreciation and amortization (EBITDA), rose 8% sequentially and 4% YoY to Rs 2,144 crore, the company said.
“We are witnessing moderation in growth given the tough macroeconomic environment. We will continue to work with our customers to pre-empt their technological requirements and identify new demand drivers, especially for digital services,” C P Gurnani, managing director and CEO of Tech Mahindra was quoted as saying in the release.
The net new deal wins for the quarter was $795 million, higher than $716 million a quarter ago, and $704 million a year ago.
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Operating margin, calculated as earnings before interest and taxes (EBIT), improved 60 bps sequentially to 12%.
In terms of geography, revenue contribution from the Americas moderated sequentially, while it improved for Europe and Rest of World.
Tech Mahindra got 49.7% of the total sales from the Americas in the third quarter, compared to 50.8% a quarter ago. Europe’s contribution was 24.4% and the rest of the world contributed 25.9%.
In terms of industry verticals, growth in the mainstay communications, media and entertainment remained stable at 39.8% in the third quarter. The manufacturing segment saw a 20 bps improvement in sales contribution to 10.3%.
Banks, financial services and insurance (BFSI), saw a decline to 15.9% from 16.3% a quarter ago.
Tech Mahindra added one client in the over $50 million basket in the December quarter, and two in the $20 million basket.
The top five clients made for 18% of the total sales in the December quarter, compared to 23% a year ago.
The net headcount was down by 7,844 as of December, when compared to the headcount at the end of September.
Like peers, Tech Mahindra too, saw a sharp moderation in the attrition. The last twelve months (LTM) attrition rate dropped to 17% from 20% a quarter ago.
The utilisation rate also saw an improvement to 86% in the quarter from 85% a quarter ago.
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