Tech Mahindra reported a 38 per cent decline in consolidated net profit at ₹692.5 crore in the April-June quarter of fiscal 2023-24, compared to ₹1,131 crore in the same period last year. Sequentially, too, net profit was down by over 38 per cent.
The IT major’s consolidated revenue from operations during the first quarter of the current fiscal stood at ₹13,159 crore, a rise of 3.5 per cent, compared to ₹12,707 crore in Q1FY23.
The total headcount stood at 1,48,297 at the end of the June quarter, down 4,103 quarter-on-quarter. The company’s cash and cash equivalent stood at ₹7,701 crore as of June 30, 2023. Voluntary attrition fell to 13 per cent in the quarter.
Revenue from the communications, media and entertainment (CME) segment dropped eight per cent year-on-year, while financial services and insurance (BFSI) dropped 5.4 per cent. Revenue from manufacturing and technology rose 8.6 per cent and 8 per cent year-on-year, respectively.
Despite reporting a washout quarter, like all IT companies, Tech Mahindra also highlighted its generative AI capabilities, unveiling its generative AI studio in April, and upskilling around 8,000 associates in generative AI skills.
Outgoing CEO, C.P. Gurnani, said the company has invested a lot in AI platforms, and doubled down on investments in cloud, data and 5G solutions. It is doing “reasonably” well with metaverse, blockchain and Web 3.0 technologies.