Tech Mahindra's Profit Soars: A Financial Turnaround

Tech Mahindra reported an 89% increase in net profit for the December quarter, reaching Rs 989 crore. The company's previous year's performance was lower with a net profit of Rs 524 crore. Revenue rose by 1.4%, while service costs dropped by 5.1%. The operating profit margin improved to 13.6%.

IT services giant Tech Mahindra on Friday announced an impressive 89% increase in its net profit for the December quarter, amounting to Rs 989 crore. This marks a significant financial turnaround from the same period last year when the company's profits were only Rs 524 crore due to impacted performance.

During the reporting quarter, Tech Mahindra's revenue from operations saw a modest rise of 1.4%, totaling Rs 13,286 crore. Service costs effectively decreased by 5.1% to Rs 9,456 crore, contributing to improved financial results.

The operating profit margin witnessed a healthy expansion, climbing to 13.6% compared to 13.1% in the previous quarter and 8.8% a year ago. Despite the profit jump, the company's stock fell 1.81% to close at Rs 1,658.85 on the BSE, while the Sensex saw a 0.55% decline.

(With inputs from agencies.)