Tech Mahindra shares falls 5% after Q2 earnings 2023: Should you still buy?

Tech Mahindra is an Indian international information technology services and consulting company. It is a part of the Mahindra Group, the company is headquartered in Pune and has its registered office in Mumbai. Tech Mahindra is a US$6.0 billion company with more than 148,000 workers across 90 nations. The company was ranked #5 in India’s It firms and overall No.47 on the Fortune Indian 500 list for 2019. Now many people are super curious to know about the whole information about it. Here we have more information about the news and we will share it with you in this article.

Tech Mahindra

As per the report, Tech Mahindra declared a weak set of results yet again. IT shares declined almost 5% on Thursday after it said a sharp fall in its net profit in the September quarter (Q2FY24). It also failed to meet street anticipations on both profit and income. Further cuts in target costs and profit estimations by diverse brokerages also kept the sentiment negative. The stock failed up 4.6% to its intra-day low of 1089. Currently, this news has been making headlines on the internet and people are super curious to know about the whole information.

The company reported a 61.1% YoY decline in Q2FY24 consolidated net profit at 505.3 crore versus 1,299.2 crore. Successively, the net proceeds were down 28.18%. In Q1FY24, the net profit of the firm was 703,60 crore. Meantime, its Q2FY24 close income from functions decreased 2% YoY to 12,863.9 crores in Q2FY24 against 13,129.5 crores in the year-ago period. Its revenue was particularly pulled by the Communications, BFSI segments, and Media and Entertainment (CME). On a quarter-on-quarter (QoQ) basis, payment for operations was down 2.20%. You are on the right page for more information about the news, so please read the complete article.

Also Read:  Thematic And Hybrid Funds Garnered Higher Inflows In September

In US dollar terms, the company’s revenue came at 1,555 million down 5.1% YOY and 2.8% QoQ (quarter-on-quarter). The company’s EBIT margin or using margin came down to 4.7 percent, which is more flawed than 6.8 percent in the last quarter. Segmentwise banning Manufacturing (up 5.7 percent YoY) and Technology (up 2.8 percent YoY), the revenue of all key segments dropped on a YoY basis. Payment of the Communications, Media, and Entertainment (CME) vertical decreased by 11.5 % YoY. The firm’s net new deal wins (TCV) in the quarter also declined to $640 million against $716 million YoY and $359 million in Q1FY24. Here we have shared all the information that we had. Stay tuned to us for more updates.

Mark
Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.