Tech Mahindra Q2 Results: Profit Surges 153% YoY, Stock Hits 52-Week High

Tech Mahindra, a leading IT services firm, announced its Q2 results, for the quarter ending 30th September 2024. The quarterly results show robust growth in profits and revenue. The company reported a consolidated net profit of ₹1,250 crores, a 153.1% year-on-year (YoY) increase, while revenue climbed 3.5% YoY to ₹13,313 crores. Sequentially, profit rose 46.81%, and revenue grew by 2.36%.

Quick Insights:

●    Revenue: ₹13,313 crores, up by 3.5% YoY.
●    Net Profit: ₹1,250 crores, increased by 153.1% YoY.
●    EPS: ₹13.22, up by approximately 131% YoY
●    Segment Performance: BFSI recorded a 4.5% YoY growth. While, hi-tech and media segment grew by 2.4%.
●    Management's Take: Strong growth driven by strategic improvements, with a focus on operational excellence and deal wins. Outlook remains positive.
●    Stock Reaction: On Monday, Tech Mahindra shares reached a new 52-week high of ₹1,761.30.

Management Commentary

Tech Mahindra CEO and MD, Mohit Joshi said, “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft.” He added, “We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter.” Project Fortius, an initiative launched in April, aims to achieve a 15% operating margin over three years by focusing on organic growth.

The company’s CFO, Rohit Anand also stated that investments have been made to strengthen capabilities in key service areas by broadening leadership and enhancing technical specializations. He added, “We continue to invest in strengthening our fresher hiring program, building the right mindset and future skilling and associates, by building capabilities in AI-first and cloud-first skill sets.”

Stock Market Reaction

Following the announcement of its quarterly results, Tech Mahindra's stock surged by 4.34%, hitting a 52-week high of ₹1,761.30 per share on Monday, October 21, 2024. Tech Mahindra’s strong financial performance, drove the positive market reaction.

About Tech Mahindra and Upcoming News

Tech Mahindra is an Indian Information Technology and consulting firm. During the Q2 results announcement, the Mahindra Group company also declared an interim dividend of ₹15 per equity share, with November 1 as the record date for eligibility.