Indian multinational Information technology (IT) company, Tech Mahindra Limited has reported a robust result for the Second quarter (July-sept quarter) with EBIT margins at 6 quarter high and strong revenue growth. New deal wins were higher on quarter on quarter basis. The company management says they are seeing supply-side recovery with demand resurgence in second quarter. Further, The large-cap IT company announced a dividend of Rs 15 per share. Revenue growth was strong at 2.9pc on quarter on Quarter basis, in constant currency terms while revenues grew by 4.8pc for the same quarter basis to USD 1265 mn. EBIT margin expanded sharply to 14.2 pc ie, up 413 bps led by efficiencies.
Strong growth and high margins led to a beat on profits, with profits growing by 9.6 pc to Rs 1065 cr on QoQ basis. The overall digital business now forms 47pc of revenues. Net new deal wins were higher in second quarter at USD 421 million as against USD 290 mn in the last quarter. Growth was broad-based across verticals led by strong growth in Technology, Media and BFSI segment.
Technology Media vertical contributes 9.8 pc to total revenues grew 13.3pc QOQ, BFSI segment, contributes 16.4pc to total revenues, grew 9.6pc QOQ. Communication vertical grew at 3.2pc (forms nearly 40pc of total revenues and manufacturing grew by 0.5pc (contributes 16.1pc to total revenues, all are in quarter on quarter basis. Both communication and manufacturing verticals had reported de-growth in the last quarter.
Reacting to the development, On Friday’s closing TechMahinda Share quoted at Rs.847 per share up by Rs.9.55 from previous closing.
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