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Tech Mahindra’s Q2 net profit falls 4% to ₹1,285 crore

Tech Mahindra’s Q2 net profit falls 4% to ₹1,285 crore

  • Revenue for the quarter grew 20.7% on year at ₹13,129 crore as compared to ₹10,881 crore in the corresponding quarter last year. Sequentially, revenue grew 3.3%.
  • The company’s board also announced a special dividend of ₹18 per share.
  • On the bright side, attrition rate for Tech Mahindra has been improving consistently to 20% in Q2 FY23 from 22% in Q1 FY23 and 24% in Q4 FY22.
India’s sixth largest IT services company Tech Mahindra today reported a 4% decline in consolidated quarter net profit to ₹1,285 crore in the second quarter against ₹1,338 crore in the same quarter last year. Sequentially, its net profit grew 13.6%.

In constant currency (CC), revenues grew by nearly 2.9% sequentially and in dollar terms it was up 0.3%. Revenue for the quarter grew 20.7% year-on-year to ₹13,129 crore.

The company’s board also announced a special dividend of ₹18 per share. The company’s total headcount was at 163,912, up 3.7% sequentially. Investors are keenly monitoring addition in headcount, an increase is a positive.

"We continue to focus on being resilient and agile to ensure long-term value for our people, customers, partners, and the society at large. While market conditions evolve and supply-side challenges continue, we will strengthen our differentiated offerings to help customers in their transformation journey through our integrated and new-age solutions,” said CP Gurnani, MD & CEO at Tech Mahindra.

Q2 FY23

Q1 FY23

Q2 FY22


₹13,129 crore

₹12,707 crore

₹10,881 crore

Net profit

₹1,285 crore

₹1,131 crore

₹1,338 crore





Rohit Anand, the chief financial officer at Tech Mahindra said that they have taken several measures to achieve operational efficiencies and ensure long term sustainable growth.

“While we continue to address the dynamic market conditions, we will remain focused on creating value for our stakeholders, through continued operational rigor, robust cash generation and prudent capital allocation,” he added.

Tech Mahindra has the lowest attrition rate among top 5 companies
On the bright side, the attrition rate for Tech Mahindra has been improving consistently. The company exited the quarter with an attrition rate of 20% against 22% in the first quarter and 24% in Q4 FY22. If the company is able to keep up with its predictions, in the next two quarters, it could come down to 18%.

Tech Mahindra’s attrition is still better than peers Infosys, which is at 27.1% and that of TCS at 21.5%.
Top 5 IT companies

Attrition rate in Q2 FY23





HCL Technologies




Tech Mahindra


On a consolidated basis, Tech Mahindra’s expenses shot up 27% on year and 5.3% sequentially in the September quarter to ₹6,895 crore.

Employee benefit expenses


Q2 FY23

₹6,895 crore

Q1 FY22

₹6,550 crore

Q2 FY22

₹5,416 crore

The company also said that during the quarter it had won a deal with one of world’s largest growing ERP solutions companies to provide digital product engineering, support & consulting services. Tech Mahindra also won a multi-year strategic deal with one of the world’s leading American software developers in the gaming industry, to help scale their content moderation business.

It was also chosen by one of the largest omni-channel solutions providers based in Europe, for a multi-year deal.

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