Tech Mahindra Reports Significant Growth in Q3

Tech Mahindra, the country's fifth largest IT services firm, announced a remarkable 93% increase in its net profit for the December quarter, reaching Rs 983 crore. This surge is attributed to a low base in the previous year, where the company faced challenges that impacted its performance.

Revenue and Cost Analysis

For the quarter in review, operational revenue saw a modest increase of 1.4% to Rs 13,286 crore. However, the cost of services experienced a 5.1% reduction, settling at Rs 9,456 crore. Despite these changes, there was a slight 0.2% decrease compared to the previous quarter.

Leadership's Perspective

Mohit Joshi, the CEO and Managing Director, expressed optimism about the company's progress. He emphasized the importance of sustainable growth over pursuing 'low quality' deals for short-term gains. Joshi also highlighted the company's efforts in efficient service delivery, appropriate pricing, and cost optimization as key factors behind the improved profit margins.

Future Outlook

With a focus on continuous improvement, Joshi projected that the operating profit margin would climb to 15% by FY27. The company's strategic initiatives and the addition of new talent are expected to drive this growth further.