Tech Mahindra Ltd on Wednesday reported its third quarter profit for the financial year 2023-24 at Rs 510.40 crore, down 60.6 per cent in comparison to Rs 1296.60 crore during the third quarter of FY23, missing estimates. It posted revenue from operations at Rs 13,101.30 crore, down 4.6 per cent as against Rs 13,734.60 crore during the corresponding quarter of last year. According to a CNBC TV18 poll, Tech Mahindra was expected to record Q3FY24 profit at Rs 605 crore and revenue for the quarter in review was estimated at Rs 12,813 crore. The company EBITDA stood at Rs 1,146 crore, down 46.5 per cent on-year. 

This is the first quarter since new CEO Mohit Joshi completely took over of the company from former CEO CP Gurnani. Mohit Joshi, Managing Director & Chief Executive Officer, Tech Mahindra, said, “The quarter was a mixed outcome, with growth in the manufacturing and healthcare segments but muted spending in areas like communications, BFSI, and hi-tech. While this dichotomy in the markets will take its own time to settle, we are focusing internally on realigning under the new structure and strengthening the foundations of our organisation.”

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Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “This year has given us the opportunity to step back and review our portfolio. We are confident that these actions will help us correct our course and deliver value in the long term. We are encouraged by the robust cash conversions this year, and we hope to continue this rigor in other operational areas as well.”

In the USD terms, the company posted revenue at $1,573 million, down 5.7 per cent on-year and the profit for the quarter was at $61 million, down 61 per cent on-year. EBITDA was at $138 million, down 47.1 per cent YoY. Tech Mahindra recorded a net new deal wins (TCV) for the quarter at $381 million. 

The company’s focus is currently to diversify more into other segments including BFSI and healthcare and lifesciences. Currently, 36.5 per cent of the company’s revenue comes from the Communications, media and entertainment (CME) business, 18.1 per cent from manufacturing, 10.5 per cent from technology, 15.5 per cent from BFSI, and 8.6 per cent from retail, transport & logistics segment. 

The company recorded a total headcount at the end of the quarter at 146,250 down 4,354 QoQ.