Tech Mahindra Shines with Remarkable 93% Increase in Q3 Net Profit
MUMBAI: In a stunning financial revelation, Tech Mahindra, the country’s fifth-largest IT services firm, has reported a whopping 93% surge in net profit for the December quarter, reaching an impressive Rs 983 crore. This remarkable growth was largely fueled by a favorable low-base comparison from the year-ago period, where the company faced challenges that impacted its performance.
Revenue from operations for the reporting quarter also saw a notable increase of 1.4% to Rs 13,286 crore, showcasing Tech Mahindra’s continued resilience and adaptability in the ever-evolving IT landscape. However, the cost of services witnessed a slight dip by 5.1% to Rs 9,456 crore, indicating a strategic focus on operational efficiency and cost optimization.
Seizing Opportunities Amidst Challenges
Despite facing headwinds from cross-currency fluctuations, Tech Mahindra’s senior executives remain optimistic about the company’s trajectory. Chief executive and managing director Mohit Joshi, who assumed leadership just a year ago, emphasized the importance of sustainable growth over short-term gains. Joshi’s strategic vision aims to elevate the company’s operating profit margin, which has already climbed to an impressive 10.2% in the December quarter, with a target of reaching 15% by FY27.
Driving Innovation and Expansion
Efficient service delivery, strategic pricing, and robust cost optimization strategies have been pivotal in enhancing Tech Mahindra’s margins. Chief financial officer Rohit Anand highlighted the company’s potential for further growth, with ample opportunities to expand its market presence and capitalize on emerging trends.
Embracing a Bright Future
Tech Mahindra’s recent success is further underscored by its ability to secure new deals worth $745 million in key sectors such as telecom and manufacturing. While challenges in the auto sector posed some obstacles in the manufacturing segment, the company’s resilience and adaptability have positioned it for continued growth.
With a workforce of over 1.50 lakh employees as of December 31, 2024, Tech Mahindra remains committed to nurturing talent and fostering a culture of innovation. The company’s proactive approach to talent acquisition has already seen the successful onboarding of over 4,700 freshers in the first nine months of the fiscal year, with plans to add 6,000 more in the pipeline.
In conclusion, Tech Mahindra’s stellar performance in the face of adversity reflects its unwavering commitment to excellence and innovation. As the company charts a course towards sustained growth and market leadership, its recent financial achievements serve as a testament to its resilience and strategic foresight in navigating a rapidly evolving industry landscape.
