Tech Mahindra's Booming Quarter: Profits Soar by 76.5%

Tech Mahindra, India's fifth-largest IT services firm, announced a significant 76.5% increase in profits for the March quarter, amounting to Rs 1,167 crore. This growth is attributed to a reduced tax rate, decreased impairment costs, and improved operating profit margins. The company also won new deals worth USD 798 million.

Tech Mahindra, one of India's top IT services companies, reported an impressive 76.5% increase in its profits for the March quarter, reaching Rs 1,167 crore. This substantial growth marks a significant rise from the Rs 661 crore net profit recorded in the same period last year.

The robust financial performance is attributed to several factors including a reduction in the effective tax rate from over 26% to 22%, a decrease in impairment costs, and a healthy operating profit margin that climbed to 10.5%. The company aims to further elevate this margin to over 15% by the end of FY26.

New deal wins amounting to USD 798 million were secured during the quarter, despite a 3,276 reduction in total headcount. Meanwhile, Tech Mahindra continues to make strategic moves in various sectors, noting growth in banking and financial services and a weakness in the automotive sector. The board has recommended a dividend payout of Rs 30 per share, enhancing the fiscal state's outlook.

(With inputs from agencies.)