On a consolidated basis, the IT major's net profit tumbled 24.8% to Rs 1,131.60 crore on 4.9% increase in revenue from operations to Rs 12,707.90 crore in Q1 FY23 over Q4 FY22.
On a year on year (YoY) basis, Tech Mahindra's net profit dropped 16.4% while revenue jumped 24.6% in Q1 FY23.
EBITDA stood at Rs 1,880.10 crore in Q1 FY23, down 10% quarter on quarter (QoQ) and up 0.2% YoY. EBITDA margin decreased to 14.8% in Q1 FY23 from 17.2% in Q4 FY22 and 18.4% in Q1 FY23.
In terms of dollars (USD), revenue was at $1,632 million in Q1 FY23, growing 1.5% QoQ and 18% YoY. Revenue growth stood at 3.5% QoQ and 21.2% YoY in constant currency terms. EBITDA was at $239 million, down 13.5% QoQ and down 6.2% YoY. EBITDA margins stood at 14.8%. Profit after tax was at $143 million, down 28% QoQ and down 22% YoY. Free cash flow was at $71.6 million, conversion to PAT at 50.2%.
The firm secured total net new deals worth $802 million in Q1 FY23 as against $1,011 million in Q4 FY22 and $815 million in Q1 FY23.
Total headcount at 158,035 up 6,862 QoQ. The last twelve month (LTM) IT attrition rate stood at 22% in Q1 FY23 from 24% in Q4 FY22 and 17% in Q1 FY22.
Cash and cash equivalent stood at Rs 88,008 crore as of 30 June 2022, compared with Rs 86,455 crore in 31 March 2022 and Rs 135,146 crore in 30 June 2021.
CP Gurnoni, managing director & chief executive officer of Tech Mahindra, said, "We are starting this fiscal with a renewed commitment towards delivering consistent organic growth. We remain resilient and watchful given the dynamic global macro-economic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings. Our winning strategy rests on the pillars 'Purpose, People and Performance' which is aiding us to responsibly capitalize on the strong demand environment in the market."
Rohit Anand, chief financial officer of Tech Mahindra, said, "Delivery transformation, cost optimization and cash conversion will be key focus areas, as we continue to offset the strong supply side headwinds in the market. We aim to expand our profitability through operational excellence and improved operating metrics over the course of FY'23."
Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.
Shares of Tech Mahindra fell 1.15% to settle at Rs 1,016.55 on the BSE.
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