Tech Mahindra Q2 Results FY25 reported 150.7% year-on-year growth in the consolidated profit after tax. Tech Mahindra Q2 results 2024 date was October 19. On October 21, 2024, Tech Mahindra share price closed at ₹1,701.20, a rise from the previous trading day’s close of ₹1,687.90. So, let’s dive into the details of the Mahindra group’s IT services and consulting company Q2 FY25 revenue, segment performance, and interim dividend.
Tech Mahindra Q2 Results FY25: Major Highlights
Tech Mahindra share price has delivered a positive return of 1.27% in the last 1 week (as on October 22, 2024). Here are the key highlights of Tech Mahindra Q2 quarterly results and its YoY growth:
- Profit after tax (PAT) at $149 million, up 46.1% QoQ and 150.7% YoY
- Revenue at $1,589 million, up 1.9% QoQ and 2.2% YoY
- PAT Margin at 9.4%, up 280 bps QoQ and 560 bps YoY
- EBITDA at $209 million, up 11.3% QoQ and 61.4% YoY
- EBITDA Margin at 13.1%, up 110 bps QoQ and 480 bps YoY
- Free cash flow of $157 million, down from $213 million in Q2 FY24
- New deal wins (Total Contract Value) of $603 million, down from $640 million in Q2 FY24
Tech Mahindra Q2 Results FY25: Industry Revenue Mix
According to the Tech Mahindra results Q2 2024, the communications industry contributed more than 30% to the company’s revenue in Q2 FY25. However, this segment had a fall in revenue of 1.7% YoY in Q2 FY25. The remaining segment revenue boomed in Q2 FY25, with the lowest being grown in the manufacturing segment at 0.6% YoY.
| Industry-Wise Revenue | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| Communications | 33.4% | 34.7% | -1.7% |
| Manufacturing | 17.2% | 17.5% | 0.6% |
| Hi-Tech and Media | 14.3% | 14.3% | 2.4% |
| Banking, Financial Services & Insurance | 15.8% | 15.4% | 4.5% |
| Retail, Transport & Logistics | 7.9% | 7.7% | 4.7% |
| Healthcare & Life Sciences | 7.4% | 7.2% | 4.5% |
Tech Mahindra Q2 Results FY25: Geography Revenue Mix
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In the Tech Mahindra results Q2 2024, America region revenue experienced a fall of 2% YoY in Q2 FY25. Europe revenue had a growth of 4.1% YoY in Q2 FY25. The total active customers in Q2 FY25 were 1,178 and this number was lower than the Q2 FY24 by 74 clients.
| Geography-Wise Revenue | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| Americas | 51.1% | 53.3% | -2.0% |
| Europe | 24.0% | 23.6% | 4.1% |
| Rest of World | 24.9% | 23.1% | 9.7% |
Tech Mahindra Q2 Results FY25: Headcount
In the Tech Mahindra Q2 results FY25, the employee headcount increased by 3,669 on the YoY basis and 6,653 on the QoQ basis. The last twelve months’ IT attrition rate was 10.6% as on Q2 FY25.
Tech Mahindra Q2 Results FY25: Interim Dividend
The interim dividend is ₹15 per share at a face value of ₹5 each as mentioned in the Tech Mahindra results Q2 2024. The record date for the eligibility of shareholders is set at November 1, 2024. The IT major is expected to pay the dividend by November 17, 2024.
Conclusion
Tech Mahindra Q2 results for FY25 highlighted that the technology consulting and digital solutions company is in its growth trajectory with a sharp rise in profitability and revenue. With over 1,50,000 professionals working in more than 90 countries, Tech Mahindra serves over 1,100 clients and offers a comprehensive range of services. These include consulting, information technology, enterprise applications, AI and analytics, and cloud and infrastructure services. In the last 1-year, Tech Mahindra share price has delivered a return of 44.92% (as on October 22, 2024).
Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.
Reference
https://insights.techmahindra.com/investors/tml-q2-fy-25-earnings-presentation.pdf
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