Shares of Tech Mahindra gains over 3% to open at Rs 1,745 on NSE today after reporting a remarkable 153.1% year-on-year (YoY) jump in net profit for the second quarter of FY25, reaching Rs 1,250 crore. The company’s revenue rose by 3.5% YoY to Rs 13,313 crore during the same period.
Revenue Performance
In constant currency terms, revenue grew by 0.7% QoQ and 1.2% YoY. However, revenue from the communications vertical declined by 1.7% YoY, while the banking, financial services, and insurance (BFSI) vertical posted a YoY growth of 4.5%. The technology, media, and entertainment segment saw a 2.4% rise in revenue.
Sequential Growth
On a quarter-on-quarter (QoQ) basis, Tech Mahindra saw a 46.81% increase in profit and a 2.36% rise in revenue.
Profit Margins and Deal Wins
The company’s profit after tax (PAT) margin stood at 9.4% for the quarter, an increase of 280 basis points (bps) QoQ and 560 bps YoY. Tech Mahindra secured new deal wins with a total contract value (TCV) of $603 million during the quarter.
Interim Dividend Announcement
Alongside its quarterly earnings, Tech Mahindra announced an interim dividend of ₹15 per equity share. The record date to determine shareholder eligibility for the dividend has been set for November 1.
Attrition Rate and Workforce Growth
Tech Mahindra’s IT attrition rate rose to 11% in Q2FY25, compared to 10% in the previous quarter. The company’s total headcount increased by 4.5% QoQ to 154,273 employees.
Tech Mahindra’s strong profit growth and strategic focus on securing new deals position the company well, despite challenges in specific verticals and rising attrition.
Stock Performance in Last One Year
Tech Mahindra shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 5.74%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 41.33%, showcasing the stock’s resilience and upward momentum.
Year-to-date, Tech Mahindra shares have surged by 32.56%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 43%.
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