Tech Mahindra Ltd's Q3FY25 Quarterly Results

Result Summary

• Tech Mahindra Ltd reported a 3.8% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 0.9%.
• Its expenses for the quarter were down by 0.9% QoQ and 4.0% YoY.
• The net profit decreased 21.4% QoQ and increased 88.8% YoY.
• The earnings per share (EPS) of Tech Mahindra Ltd stood at 11.1 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tech Mahindra Ltd is a prominent player in the IT services and consulting industry. It provides a wide range of services, including IT solutions, consulting, and outsourcing services, primarily catering to the telecommunications sector. The company is part of the Mahindra Group, a conglomerate with a presence in over 100 countries. Tech Mahindra has been focusing on digital transformation, innovation, and expanding its services in emerging technologies such as IoT, Blockchain, and AI. The company aims to enhance its capabilities and expand its market reach through strategic alliances and mergers. As of the latest update, there are no additional recent major developments provided.

Revenue

In the third quarter of fiscal year 2025 (Q3FY25), Tech Mahindra reported a total income of ₹13,302.10 crores. This reflects a decrease of 3.8% from the previous quarter (Q2FY25), where the total income was ₹13,834.72 crores. Compared to the same quarter in the previous fiscal year (Q3FY24), the total income increased by 0.9% from ₹13,188.84 crores. This indicates a marginal year-over-year increase in revenue, despite a quarter-over-quarter decline. The financial data illustrates the company's ability to maintain revenue levels close to the previous year's performance, with slight fluctuations over the quarterly period.

Profitability

Tech Mahindra's profitability metrics for Q3FY25 reveal a profit before tax of ₹1,290.80 crores, which is a 24.6% decrease from ₹1,712.88 crores in Q2FY25. The profit before tax increased by 91.5% compared to ₹674.06 crores in Q3FY24. The tax expense for Q3FY25 was ₹308.60 crores, reflecting a decrease of 32.3% from the previous quarter's ₹456.00 crores. Year-over-year, the tax expense has risen by 99.0% from ₹155.10 crores. The profit after tax for Q3FY25 is ₹988.80 crores, down 21.4% from ₹1,257.48 crores in Q2FY25, but up 88.8% from ₹523.76 crores in Q3FY24. Earnings per share (EPS) for Q3FY25 stood at ₹11.10, marking a decrease from ₹14.10 in the previous quarter but an increase from ₹5.80 in the same quarter last year. These figures reflect significant year-over-year improvements in profitability metrics, offset by quarter-over-quarter declines.

Operating Metrics

Tech Mahindra's total expenses for Q3FY25 amounted to ₹12,011.30 crores, decreasing by 0.9% from ₹12,121.84 crores in Q2FY25 and by 4.0% from ₹12,514.77 crores in Q3FY24. This reduction in expenses, both quarter-over-quarter and year-over-year, points to the company's efforts in cost management. The company's financial performance, as measured by operating metrics, shows a decrease in expenses over the past year, which has contributed to the improvement in profit margins on a year-over-year basis. However, the quarter-over-quarter decrease in total income suggests variations in operational effectiveness across quarters. The analysis of expenses and income provides insight into Tech Mahindra's operational efficiency over the reported periods.