On a consolidated basis, the IT major's net profit rose 13.59% to Rs 1,285.40 crore on 3.32% increase in revenue from operations to Rs 13,129.50 crore in Q2 FY23 over Q1 FY23.
On a year on year (YoY) basis, Tech Mahindra's net profit declined 4% while revenue jumped 20.7% in Q2 FY23.
EBITDA stood at Rs 1,984.1 crore in Q2 FY23, up 5.5% quarter on quarter (QoQ) and down 0.6% YoY. EBITDA margin was at 15.1% in Q2 FY23 as against 14.8% in Q1 FY23 and 18.3% in Q2 FY22.
In terms of dollars (USD), revenue was at $1,638.1 million in Q2 FY23, growing 0.3% QoQ and 11.2% YoY. Revenue growth stood at 2.9% QoQ in constant currency terms. EBITDA was at $246 million, up 2.9% QoQ and down 9% YoY. EBITDA margins stood at 15.1% up 30 bps. Profit after tax was at $159 million, up 11.2% QoQ and down 12.3% YoY. Free cash flow was at $253 million, conversion to PAT at 159%.
The firm secured total net new deals worth $716 million in Q2 FY23 as against $802 million in Q1 FY23 and $750 million in Q2 FY22.
Total headcount was at 163,912 up 3.7% QoQ. The last twelve month (LTM) IT attrition rate stood at 20% in Q2 FY23 from 22% in Q1 FY23 and 21% in Q2 FY22.
Cash and cash equivalent stood at Rs 77,032 crore as of 30 September 2022, compared with Rs 88,008 crore in 30 June 2022 and Rs 120,661 crore in 30 September 2021.
CP Gurnani, managing director & chief executive officer of Tech Mahindra, said, "We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated & new-age solutions."
Rohit Anand, chief financial officer of Tech Mahindra, said, "We have taken several targeted measures to achieve operational efficiencies and ensure long term sustainable growth. While we continue to address the dynamic market conditions, we will remain focused on creating value for our stakeholders, through continued operational rigor, robust cash generation and prudent capital a/location. Additionally, we have also announced a special dividend of Rs 18 per share, in line with our capital a/location policy."
Meanwhile, the company's board has declared special dividend of Rs 18 per equity share. The record date for the same is 10 November 2022 and the special dividend shall be paid on 24 November 2022.
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 rose 0.77% to settle at Rs 1,071.65 on the BSE.
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