Tech Mahindra profit down 41%; sees turnaround

Joshi, who was earlier with Infosys, joined Tech Mahindra last year, addressing media said FY25 will be a better year than the previous one.
Tech Mahindra
Tech Mahindra (Photo | Tech Mahindra)

BENGALURU: Tech Mahindra CEO and MD Mohit Joshi on Thursday at a post-earnings analyst call laid down a three-year road map and said FY25 will be a 'turaround phase', FY26 will be ‘stabilisation phase’ and FY27 will be ‘Reaping returns’.

Tech Mahindra on Thursday posted a 41% YoY fall in its net profit for the March quarter at Rs 661 crore. Revenue stood at Rs 12,871 crore, down 6.2% YoY.

Joshi, who was earlier with Infosys, joined Tech Mahindra last year, addressing media said FY25 will be a better year than the previous one.

In FY27, the IT major aims its top line growth to be greater than that of its peer average and EBIT Margin at 15%. In Q4, its EBITDA stood at Rs 1,408 crore, down 30.3% YoY. EBIT percentage in FY24 was 6.1%, down 530 bps.

The company’s total contract value (deal wins) in Q4 stood at $500 million. It wants to infuse Artificial Intelligence in its offerings and the CEO said, “FY24 posed its fair share of challenges for the IT services sector; yet, amid the global economic uncertainties, we continue to observe a notable push towards digital adoption.”

Under Joshi, its focus verticals will be telco, manufacturing, BFSI, hi-tech and healthcare & lifesciences. Its priority segments will be Americas, Europe and prioritised countries rest of the world.

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