Mumbai: Fifth biggest IT company by revenues Tech Mahindra on Thursday re- ported a 34.7% decline in its March quarter net at R 1,117.8 crore due to narrowing profit margins. For the entire fiscal, its profit after tax came down to R 4,831.5 crore as against R 5,566 crore in FY22. Its over- all revenue grew by over 13% to R 13,718 crore in the reporting quarter, and almost flat when compared to the preceding December quarter.
Its total contract value nearly halved to $592 million as against over $1 billion in the year-ago period, and was lower than the $795 million in new deal wins in the preceding December quarter.
A slew of its peers, who have reported numbers for the March quarter, are speaking about macroeconomic volatilities in the largest market of the US impacting their business as clients defer their IT spends. The Mahindra group company hopes that there can be a resurgence in IT spends and all the investments which it has done will come in handy, its chief executive C P Gurami told reporters.
He admitted that the geopolitical scenario and war have pushed it into a difficult situation, but its experience of the past crisis has taught it to never waste a crisis. Countries rich in minerals, commodities and energy, along with the ones possessing large consumer bases, will be driving the future spends in technology, and the company is pivoting to tap into the potential, he said.