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Tech Mahindra Q2 PAT rises 26% YoY to Rs 1338.70 cr – Business Standard

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The IT services company reported 25.8% increase in consolidated net profit to Rs 1338.70 crore on 16.1% rise in revenue from operations to Rs 10881.30 crore in Q2 September 2021 over Q2 September 2020.
Tech Mahindra’s consolidated net profit fell 1.1% and revenue from operations rose 6.7% in Q2 September 2021 over Q1 June 2021.


In dollar terms, revenue stood at $1472.60 million, up 6.4% quarter-on-quarter (QoQ) and 16.4% year-on-year (YoY). Revenue growth was reported at 7.2% QoQ in constant currency terms.
The company reported net new deals wins worth $750 million during the quarter. The board has proposed a special dividend of Rs 15 per share.
CP Gumani, managing director & chief executive officer, Tech Mahindra, said: "As we record our highest sequential growth in a decade, we remain committed to deliver long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we in vest in our digital capabilities through strategic partnerships. We continue to accelerate our clients' digital journey by creating Human Centric Experiences, helping them gear up for tomorrow, today."
Milind Kulkarni, chief financial officer, Tech Mahindra, said: "Our strong execution has ensured that we maintain our profitability margins while accelerating growth momentum. We remain committed on the operational excellence journey we have boarded, and continue to create value to shareholders through efficient capital return."
Total headcount at 141,193, up 14,930 QoQ. Cash and cash equivalent stood at $1626 million as of 30 September 2021.
Last twelve months IT services attrition rate stood at 21% as on 30 September 2021 compared with 17% as on 30 June 2020 and 14% as on 30 September 2020.
Meanwhile, Tech Mahindra announced acquisition of California-based Lodestone, a leading digital engineering quality assurance provider for new age digital companies. Tech Mahindra will pay total consideration of up to $105 million including earnouts.
The acquisition will bolster Tech Mahindra's digital engineering capabilities to effectively utilize data strategy and address machine learning challenges. The strategic announcement will further enhance Tech Mahindra's capability to provide end-to-end product quality assurance across hardware, software, and data layers to strengthen the company's positioning as a leading digital transformation enabler in the engineering space.
It also announced acquisition of UK-based We Make Websites (WMW) for 9.4 million GBP.
Tech Mahindra is one of the fastest growing brands and amongst the top 15 IT service providers globally. It is focused on leveraging 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.
Shares of Tech Mahindra rose 0.42% to Rs 1524.40.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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