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Tech Mahindra Q1 PAT rises 21% QoQ to Rs 972 cr

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Capital Market
Last Updated : Jul 27 2020 | 6:04 PM IST

The IT major's consolidated net profit jumped 20.9% to Rs 972 crore on 4% fall in revenue to Rs 9,106 crore in Q1 June 2020 over Q4 March 2020.

Sequentially, EBITDA declined 3.5% to Rs 1,301 crore while its EBITDA margin expanded by 10 bps to 14.3% during the first quarter.

Profit before tax in Q1 FY21 stood at Rs 1283.20 crore, up by 32.89% from Rs 965.60 crore in Q4 FY20.

In dollar terms, the company's consolidated revenue came in at $1,207.5 million in the April-June period, down 6.7% on a sequential basis. Profit after tax (PAT) jumped 18.2% to $128.8 million in Q1 FY21 over Q4 FY20.

Total headcount stood at 1,23,416, down by 1,820 on a quarter-on-quarter (QoQ) basis. The company's cash and cash equivalent stood at $1,378.4 million as of 31 March 2020. Active Clients increased by 8% sequentially to 981 Q1 FY21.

CP Gurnani, managing director & chief executive officer, Tech Mahindra, said: "Our customer centric approach and continued focus on keeping our associates safe and connected has helped us to navigate through these challenging times successfully. We are witnessing a wave of new age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation. We are well positioned to capture such spends and our endeavor is to be back on the growth path amid increased signs of demand normalization."

Manoj Bhat, chief financial officer, Tech Mahindra, said, "Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimization. Cash conversion has been strong, while we aim to improve profitability margins as demand normalizes."

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Tech Mahindra is engaged in the business of computer programming, consultancy and related services. The firm's segments include information technology (IT) services and business processing outsourcing (BPO).

Shares of Tech Mahindra rose 1.73% to Rs 664.05 on Monday. The stock had traded in the range of 642.80 and 671.45 during the day.

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First Published: Jul 27 2020 | 5:33 PM IST

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