On January 24, 2024, Tech Mahindra Limited (BSE, NSE: TECHM) announced its Q3 2023-24 results, with Tech Mahindra clocking Q3 FY24 Revenue at ₹13,101 Cr, a rise of 1.8% QoQ.
Table of Content
Tech Mahindra: Financial Result Takeaways
The expert in consulting, digital transformation, and business re-engineering services reported a positive Q3 FY24, and here are the key financial highlights:
- The Company reported Revenue at ₹13,101 Cr, a rise of 1.8% QoQ, but down 4.6% YoY.
- The EBITDA for the quarter stood at ₹1,146 Cr, an increase of 6.9% QoQ, but a decrease of 46.5% YoY.
- The Company’s consolidated PAT (Profit after Tax) was ₹510 Cr, high by 3.4% QoQ, but a decrease of 60.6% YoY.
- The EPS (Earnings per share) for the quarter was at ₹5.8.
Additional Read: Q3 Results Dashboard
Other Highlights for Q3 FY24
There were other pertinent highlights in Tech Mahindra’s quarterly result:
- The Company’s total headcount for the quarter was at 146,250, a decrease of 4,354 QoQ.
- The Company’s Cash and Cash Equivalent stood at ₹7,012 Cr at the end of Q3 FY24.
- In terms of Revenue by Industry, Communications, Entertainment, and Media leads in Q3 FY24.
- Concerning geography, 51.9% (QoQ) has been generated by the North American markets, the highest Revenue source this quarter.
Business Information
The Company reported relevant business information as part of its Q3 FY24 results:
- Tech Mahindra announced the appointment of a new CPO or Chief People Officer.
- The Company also announced the appointment of a new Chief Marketing Officer (CMO).
- Tech Mahindra witnessed the launch of a new unit of business, Navixus’ within the Company’s area of Tech Mahindra BPS or Business Process Services. Navixus™ blends the strengths of Tech Mahindra’s Business Process Services and the Eventus Solutions Group, recently acquired by the Company, enabling clients to navigate digital paths.
- In Q3 FY24, the Company announced the Populii launch, a platform for crowdsourcing that enables gig workers to work with top organisations via micro jobs requiring “human-in-the-loop” services. The platform aims to create flexible opportunities for the gig workforce and equip businesses with reliable data sourced from qualified candidates to structure competitive Al algorithms.
- The Company has announced the introduction of the “Vision amplifAler” solution within Tech Mahindra’s suite of TechM amplifAl0 Al solutions.
- Q3 results saw the collaboration of Tech Mahindra with Amazon Web Services (AWS) for the construction of a sports cloud platform. This collaboration is important for sports organisations and will offer use cases that are related to content and engagement from the community, as well as focus on sports analytics, among other things. The platform aims to generate an immersive experience of the “stadium-to-home” for sports fans.
Q3 Accolades and Recognitions
In Q3 FY24, the Company had information concerning recognitions and awards to share, relevant to the Company’s business success outcomes:
- Tech Mahindra stands out as the sole Indian IT company to hold a position in the Dow Jones Sustainability Indices 2023, a component of the DJSI World Index, for the 9th consecutive year.
- The Company has managed to retain a 100 Percentile with an S&P Global ESG Score of 86 in the Dow Jones Sustainability Index 2023, positioning Tech Mahindra in the category of the top 1% S&P Global ESG Score.
- Other recognitions from relevant authorities included the Company having the status of “Great Place to Work” as well as an organisation putting sustainability at the top of its priorities.
- With accolades rating the Company as “leader” in most segments of its business, Q3 FY24 was a positive quarter in terms of financial performance and the Tech Mahindra brand.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Mn as reported by the Company, except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | QoQ % | Q3 FY 2022-23 | YoY % |
| Revenue from Operations | 131,013 | 128,639 | 1.8% | 137,346 | -4.6% |
| Gross Profit | 31,365 | 28,887 | 8.6% | 39,409 | -20.4% |
| EBITDA | 11,465 | 10,723 | 6.9% | 21,440 | -46.5% |
| EBITDA % | 8.8% | 8.3% | 0.4% | 15.6% | -6.8% |
| Profit Before Tax | 6,788 | 6,153 | 10.3% | 17,712 | -61.7% |
| Profit After Tax (PAT) | 5,237 | 5,053 | 3.6% | 12,853 | -59.3% |
| EPS in ₹ (basic) | 5.77 | 5.59 | 3.3% | 14.70 | -60.7% |
| EPS in ₹ (diluted) | 5.76 | 5.57 | 3.4% | 14.64 | -60.7% |
Additional Check: Tech Mahindra Share Price
Tech Mahindra: Q3 FY24 Result Summary
Tech Mahindra, a key player in the Mahindra Group of companies, was incorporated in 1945. It stands to be one of the most prestigious and biggest multinationals with 260,000 employees across 100 countries. In the present day, the Conglomerate holds the top position in utility vehicles, information technology, farm equipment, and financial services in India. By volume, the Conglomerate is the world’s largest tractor company. The Conglomerate also boasts a key presence in the sectors of agriculture, renewable energy, real estate, hospitality, and logistics.
Tech Mahindra, the technology arm of the Mahindra Group, offers clients customer-centric and innovative digital experiences, guiding enterprises for future readiness in the digital space. It is a USD 6.5+ billion organisation comprising 148,000+ experts across 90 countries supporting over 1250 international customers, including Fortune 500 companies. The Company focuses on the leverage of next-gen technologies such as Artificial Intelligence, Metaverse, Quantum Computing, 5G, Blockchain, Cybersecurity, and more, for enabling end-to-end digital transformation. Tech Mahindra stands out as being the sole Indian company to earn the HRH The Prince of Wales’ Terra Carta Seal for its promise to create a sustainable future.
Despite a decline in Revenue and Net Profit, Tech Mahindra has reported an expected quarterly result as its financials have been adversely affected by seasonality, continuing challenges in the sector of communications, and muted discretionary expenditures in key markets. As expressed by the Company’s MD, the result was a mixed bag, with some growth seen in Healthcare and Manufacturing, but muted in BFSI sectors.
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Source: Tech Mahindra Press Release – BSE
