Tech Mahindra Q2 Results: Sharp fall in profit; dividend of ₹12; 5 key takeaways from Tech Mahindra’s Q2 earnings

Tech Mahindra’s July-September (Q2) quarter earnings showed a sharp decline in profit after tax (PAT) while the revenue also showed a marginal decline.

Let’s take a look at five key takeaways from the IT major’s Q2 scorecard.

Revenue

Tech Mahindra’s Q2FY24 consolidated revenue from operations declined 2 per cent YoY to ₹12,863.9 crore in Q2FY24 against ₹13,129.5 crore in the year-ago period.

In the US dollar terms, the company’s revenue came at 1,555 million, down 5.1 per cent YoY and 2.8 per cent QoQ (quarter-on-quarter).

Profit

Consolidated profit after tax (PAT) for the quarter under review came at ₹505.3 crore, down 61.1 per cent YoY against ₹1,299.2 crore in Q2FY23. PAT, in dollar terms, came at $59 million, down 29.3 per cent QoQ and 62.5 per cent YoY.

The profit numbers attributable to the owners of the company came at ₹493.9 crore against ₹1,285.4 crore YoY.

EBITDA

According to the company’s exchange filing, Tech Mahindra’s Q2FY24 EBITDA came at ₹1,072 crore, down 19.9 per cent QoQ and 46 per cent YoY. In the US dollar terms, EBITDA came at $129 million, down 20.5 per cent QoQ and 47.3 per cent YoY.

Dividend

The company’s board approved an interim dividend of ₹12 per share of ₹5 each which is 240 per cent of the face value. The record date for the purpose is Thursday, November 2, 2023. The interim dividend shall be paid on Tuesday, November 21, 2023, said the company.

Headcount

Tech Mahindra’s total headcount in Q2FY24 stood at 1,50,604, up 2,307 QoQ.

(More to come)