The IT services major reported a 4.8 per cent quarter-on-quarter rise in consolidated revenues to Rs 10,198 crore for the reported quarter, which was slightly above analysts’ expectations.
In dollar terms, the company’s revenues rose 4.1 per cent sequentially, while in constant currency terms it climbed 3.9 per cent.
“We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation,” said CP Gurnani, managing director and chief executive officer at Tech Mahindra.
The strong demand for transformational deals saw the company report deal wins worth $815 million in the reported quarter. The company managed to add one client in the $50 million plus category and one client in the $20 million plus category in the June quarter.
The topline growth of the company was supported by all major verticals with technology, manufacturing and BFSI leading the way. In terms of geography, growth came from the North American and European markets, while the rest of the world saw sequential decline.
On the operating front, performance was dented likely due to wage pressures. The company’s consolidated operating profit fell 3.7 per cent on-quarter to Rs 1,876 crore, while its operating margins shrunk 160 basis points to 18.4 per cent.
Despite the wage hikes taken by the company, the attrition rate jumped to 17 per cent in the quarter from 13 per cent in the previous quarter, reflecting the struggle in retaining talent.
Shares of Tech Mahindra ended 0.8 per cent higher at Rs 1,127.9 on the National Stock Exchange.
