BUSINESS

Tech Mahindra's Profit Soars 93% in Q3 : Tech Mahindra Achieves 92.6% YoY Growth in PAT, Reports Strong Financial and Business Performance

Tech Mahindra Achieves 92.6% YoY Growth in PAT, Reports Strong Financial and Business Performance
Chennai – January 17, 2025: Tech Mahindra, a leading global provider of technology and digital solutions, announced impressive financial results for the quarter ending December 31, 2024. The company reported a 92.6% year-on-year (YoY) growth in Profit After Tax (PAT) to ₹983 crores and significant achievements across its business.

Synopsis

Tech Mahindra reported a 92.6% YoY PAT growth to ₹983 crores for Q3 FY25, with revenue of ₹13,286 crores and new deal wins worth $745 million. Strategic partnerships, AI-powered solutions, and efficiency initiatives drove strong performance. Recognized globally for sustainability and innovation, Tech Mahindra continues to lead in digital transformation across industries.


Key Takeaways

  • Financial Growth: 92.6% YoY PAT growth; ₹13,286 crores revenue (+1.4% YoY).
  • New Deals: $745 million TCV, a 95.4% YoY increase.
  • AI & Innovation: Launched "TechM agentX" and CoEs with NVIDIA.
  • Global Recognition: Ranked 1st in India, 2nd globally (DJSI 2024); Cisco’s “Trailblazer Supplier of the Year.”
  • Operational Excellence: Improved PAT margins, strong free cash flow of $199 million.

Strong Profit Performance Amid Market Dynamics

Tech Mahindra, a global leader in digital transformation and consulting services, has reported impressive financial results for the quarter ended December 31, 2024, marked by substantial profit growth despite revenue headwinds. The company's Profit After Tax (PAT) surged by 92.6% year-over-year to reach ₹983 crores, demonstrating strong operational efficiency and successful cost management initiatives.

Financial Highlights

While revenue showed a marginal decline of 1.3% quarter-over-quarter to USD 1,567 million, the company's EBITDA witnessed a significant uptick of 54.7% year-over-year to USD 213 million. The EBITDA margin expanded by 480 basis points YoY to reach 13.6%, reflecting successful implementation of operational optimization strategies.

Strategic Initiatives and Innovation

The quarter saw Tech Mahindra making significant strides in next-generation technologies:

  • Launch of TechM agentX, a comprehensive GenAI-powered solution suite promising up to 70% improvement in enterprise productivity
  • Establishment of NVIDIA-powered Centers of Excellence for advancing sovereign large language models and AI applications
  • Strategic collaboration with AWS to develop an Autonomous Networks Operations Platform
  • Integration with ServiceNow to enhance enterprise service management solutions with GenAI capabilities

Market Recognition and Leadership

The company's excellence in service delivery and innovation has been widely recognized:

  • Ranked 1st in India and 2nd globally in the Dow Jones Sustainability Index 2024
  • Received Bombardier's Diamond Supplier certification for the third time
  • Positioned as a Leader in multiple ISG Provider Lens evaluations across various service categories

Future Outlook

CEO Mohit Joshi expressed confidence in the company's trajectory, citing improved deal wins in key verticals and prioritized markets. The company's focus on operational margins and strategic initiatives positions it well for future growth, despite current market challenges.

The company continues to maintain a strong workforce of 150,488 professionals across 90+ countries, serving over 1,100 clients globally, with a notable improvement in attrition rates to 11.2%.

Looking ahead, Tech Mahindra's strategic investments in AI, cloud computing, and digital transformation services, combined with its strong partnership ecosystem, suggest a robust foundation for sustained growth and market leadership in the technology services sector.

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