Tech Mahindra Q2FY23 profit drops by 3%, declares special dividend of ₹18

On Tuesday, Tech Mahindra, country’s fifth largest IT services exporter reported a 4% year-on-year decline in consolidated profit after tax (PAT) to ₹1,285.4 crore in the second quarter of FY23 (July-September), as higher expenses offset the rise in revenue. The firm had posted a profit of ₹1,338.7 crore in the year-ago period. On a sequential basis, the IT services exporter’s PAT rose 13.6% from ₹1,131.6 crore in the April to June quarter. The company board also announced a special dividend of ₹18 per share.

Revenue for the quarter came in at ₹13,129.50 crore, up 20.6% YoY over ₹10,881.30 crore in the corresponding quarter last year. Sequentially, the revenue was up 3.3%. In constant currency (CC) terms, the dollar revenue grew by nearly 3% sequentially. Tech Mahindra added 5,877 new hires in Q2, taking its total headcount to 163,912, up 3.7% QoQ, the company said in a regulatory filing.

The attrition rate inclined to 22% for the quarter from 20% reported in the first quarter ended 30 June, 2022.