Tech Mahindra's Financial Leap: Strong Profits Amid Cross-Currency Challenges

Tech Mahindra, India's fifth-largest IT services firm, reported a 93% rise in December quarter net profit, reaching Rs 983 crore. Despite cross-currency challenges, it achieved wider margins by optimizing costs and efficient service delivery. The BFSI vertical led revenue growth, with significant new deals in telecom and manufacturing.

Tech Mahindra, ranked as India's fifth-largest IT services company, has announced a significant increase in profits for the December quarter. The firm reported a 93 percent surge in net profit, amounting to Rs 983 crore, significantly higher compared to the same period last year, which saw a figure of Rs 510 crore.

The company's revenue from operations grew modestly by 1.4 percent to Rs 13,286 crore. Despite the sequential revenue dip attributed to cross-currency headwinds, Tech Mahindra successfully expanded its operating profit margin to 10.2 percent, with expectations of reaching 15 percent by the financial year 2027.

Key growth was fueled by the banking, financial services, and insurance sectors, alongside notable deals secured in telecom and manufacturing. Under the leadership of CEO Mohit Joshi, Tech Mahindra focuses on sustainable growth, steering clear of 'low quality' deals to maintain robust financial health.

(With inputs from agencies.)