Tech Mahindra on Monday reported a 16.4 percent slide in its consolidated net profit at Rs 1,132 crore for the June 2022 quarter.
The Mahindra group company, which is the fifth biggest IT exporter in the country, had posted a net profit of Rs. 1,353 crore in the year-ago period. For the reporting quarter, its revenue grew 24.6 percent to Rs. 12,708 crore as against Rs. 10,198 crore in the year-ago period. The operating profit slid 9.2 percent to Rs. 1,403.4 crore, and the operating profit margin narrowed to 11 percent from 15.2 percent in the year-ago period, the company said in its exchange filing.
It added 6,862 employees during the quarter to take its total headcount to 1.58 lakh.
“We remain resilient and watchful given the dynamic global macroeconomic environment and will continue to invest in new and emerging technologies to deliver differentiated offerings,” its chief executive and managing director C P Gurnani said.
The company’s scrip shed 1.15 percent to close at Rs. 1,016.55 a piece on the BSE on Monday, as against a correction of 0.55 percent on the benchmark.
Earlier this month, ratings agency Crisil said that the information technology services sector will see a sharp fall in revenue growth to 12-13 percent in FY23 from 19 percent in FY22.
However, the current depreciation in the rupee, strong demand for new age technologies like artificial intelligence, cloud computing and Internet of Things will help the over $220-billion (roughly Rs. 17,44,400 crore) sector maintain a double-digit growth, it said in a report.
The moderation from 19 percent to 12-13 percent will be the highest in the last eight years, it said and attributed the decline to expected tightening of IT expenditure by corporates amid the inflationary headwinds in the United States and European Union (EU), which together contribute almost 85 percent to the sector’s revenue.