Tech Mahindra Limited — Important, 17-01-2025: Financial Result Updates

Tech Mahindra has announced a board meeting to disclose the financial results for the quarter and nine months ended December 31, 2024. The company reported consolidated revenue from operations of ₹13,286 crore, reflecting a 1.4% year-over-year growth but a slight 0.2% decline quarter-over-quarter.

Net profit for the quarter surged to ₹983 crore, marking a 92.6% increase compared to the previous year's ₹505 crore. This significant growth is attributed to improved operational efficiency and execution of strategic initiatives, despite facing some challenges in revenue generation, particularly in the Americas and Europe where quarter-over-quarter revenues declined by 1.8% and 3.0%, respectively.

Operating expenses remained under control, with total expenses at ₹102,757 crore, a decrease of 1.3% from the prior quarter. Tech Mahindra maintained a healthy EBITDA margin of 13.6%, up from 8.8% last year, indicating solid operational leverage. The earnings per share (EPS) for the quarter stands at ₹11.10, which is a notable rise from ₹5.77 year-on-year.

The company generated free cash flow amounting to ₹1,657 crore and reported a cash balance of ₹6,841 crore at the end of the quarter. Tech Mahindra's strategic moves toward innovation and enhancing operational efficiencies are expected to bolster its position in the competitive landscape. Overall, the strong profit growth and focus on cost management present a positive outlook for investors, suggesting a potential buyover the medium term given the positive financial trajectory, coupled with new deal wins valued at $745 million.