Tech-Mahindra

Tech Mahindra announced the audited consolidated financial results for its quarter ended June 30

Mumbai – July 26, 2023: Tech Mahindra Ltd., a specialist in digital transformation, consulting, and business re-engineering services, today announced the audited consolidated financial results for its quarter that ended June 30, 2023.

Revenue from operations rose by 4% year-on-year (YoY) to Rs 13,159 crore in the reporting period. Tech Mahindra reported a 38 percent year-on-year decline in net profit, which stood at Rs 692.5 crore for the first quarter ended June 30, compared to the same quarter in the last fiscal year, when it stood at Rs 1,147.5 crore. Sequentially, the decline was 38 percent compared to the net profit of Rs 1,125 crore reported in the fourth quarter of the last fiscal year.

Segment-wise, revenue from the communications, media, and entertainment (CME) dropped 8% YoY, while that from BFSI fell 5.4% from the previous-year period. The revenue from manufacturing and technology rose 8.6% and 8% YoY, respectively, for the first quarter. The company’s total contract value (TCV) or deal wins stood at $359 mn, down from $592 mn (-39.36 percent) in the last quarter and $802 mn (-55.24 percent) in the same quarter last year.

CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, “Our quarter results reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and team to overcome this temporary setback and deliver long-term value for our customers and shareholders.”

Chief Financial Officer Tech Mahindra Rohit Anand said, “This quarter was challenging for us as revenue growth faced strong headwinds, which impacted profitability. We have taken swift and decisive actions to address these issues and improve our execution.”

Latest Advancements

Tech Mahindra has announced integrating with Microsoft to enable Generative AI-powered enterprise Search. The new offering, Generative AI-Powered Enterprise Knowledge Search under Tech Mahindra’s TechM amplifAI0->∞ combines Microsoft Azure OpenAI Service, Azure Cognitive Search, and Azure Language understanding to increase effectiveness and personalization, enabling capabilities like content summarization, knowledge graph-led knowledge structuring and a new kind of query interface.

The company has partnered with Espressive to provide automated and cost-effective digital workplace assistance. The partnership will enhance their customers' overall employee experience by automating real-time requests through an AI-based virtual support agent, Espressive Barista. The platform’s advanced Natural Language Processing (NLP), Natural Language Understanding (NLU), and Machine learning capabilities will ensure that responses are highly personalized to reassure employees that their requests have been fully understood and resolved in real time.