Revenue Meets Estimates, Attrition Falls

Tech Mahindra Ltd.’s second quarter revenue rose aided by deal wins.

The technology company’s consolidated revenue rose 3% sequentially to Rs 13,130 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 13,165.5-crore consensus estimates of analysts tracked by Bloomberg.

Tech Mahindra won deals worth over $716 million in the quarter ended September, compared with $802 million in the previous quarter.

The company’s net additions in the quarter stood at 5,877, taking the total headcount to 1,63,912 as of September.

Tech Mahindra Q2 Highlights (QoQ)

• Dollar revenue rose 0.3% to $1,638 million.

• Net profit rose 14% at Rs 1,285.4 crore, against the Rs 1,202.6-crore forecast.

• Operating profit rose 5% to Rs 1,468 crore, against an estimated Rs 1,505.5 crore.

• EBIT margin remained flat at 11%.

• Attrition fell to 20% in Q2 on last 12-month basis.

The company has also declared a special dividend of Rs 18 per share, of face value of Rs 5 apiece.