Tech Mahindra: Q3 FY24 Result Update
30-01-2024

Particulars

Q3FY24 (Rs. Cr)

YoY Trend

Comments

Revenue

13,101

-5%

The enterprise segment grew 2% QoQ. The communications segment marginally declined by 0.3%. There was a positive lift from the seasonality business in Comviva and the retail segment which was off-set by the impact of furloughs.
EBITDA

1,146

-46%

 
EBITDA Margin

8.7%

- 680 bps

Standalone operating margins were impacted by 160 bps due to exceptional items (closure of certain non-core contracts)
PAT

524

-61%

Other income was lower due to forex loss of $ 5 Mn
  • New large deal win TCV was reported at $381 Mn for the quarter (down 52% YoY).
  • A prominent life and annuities provider in North America selected the company as the strategic IT transformation partner.
  • The company launched Vision amplifAIer, a solution that infuses GenAI in computer vision and provides end-to-end workbench to substantiate computer vision use cases.
  • The erstwhile organization structure which comprised 12 sales SBUs, is now simplified to just six units.

Management expects significant volatility in the telecom vertical. Recovery shall need atleast 2 quarters. Organizational change is underway with Mohit Joshi taking charge as MD & CEO. Earnings revival shall take some more time but the long-term story for the company remains intact. MRP has been revised to Rs. 1,164.

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