Mumbai: IT services company Tech Mahindra witnessed a significant 61.6 percent drop in net profit to Rs 494 crore compared to the previous year for the quarter ending on September 30.
This was primarily due to a slowdown in demand in the telecom and communications sector, along with delays in deal closures.
The communications, media, and entertainment (CME) segment, which contributes nearly 40 percent of the companys revenue, experienced a decline of 4.9 percent QoQ and 11.5 percent YoY.
Consolidated revenue for Q2FY24 showed a 2 percent YoY decrease, totaling Rs 12,864 crore.
On a QoQ basis, revenue declined by 2.2 percent. The companys EBIT margin, or operating margin, was 4.7 percent, lower than the previous quarters 6.8 percent.
Tech Mahindras board declared an interim dividend of Rs 12 per share for FY23-24.
This comes at a time when Tier-I IT companies are revising down their revenue forecasts for FY24 due to prevailing macroeconomic challenges, despite anticipating a robust order book for the next two quarters.
