On a year on year (YoY) basis, Tech Mahindra's net profit grew 22.96% while revenue fell 1.17% in first quarter of FY25.

EBITDA stood at Rs 1,564.5 crore in the quarter ended 30 June 2024, up 11.1% QoQ and 16.9% YoY. EBITDA margin was at 12% in Q1 FY25 as compared to 10.9% in Q4 FY24 and 10.2% in Q1 FY24.

In terms of dollars (USD), revenue stood at $1,558.9 million in Q1 FY25, registering growth of 0.7% QoQ and a decline of 2.6% YoY. In constant currency terms, revenue grew by 0.7% QoQ and declined by 1.2% YoY. Profit after tax was at $102 million, up 28.6% QoQ and up 21.3% YoY. Free cash flow was at $106 million in the June quarter.

During the quarter, EBITDA was at $169.2 million, up 22.9% QoQ and down 31.1% YoY. EBITDA margin came in at 10.9% in Q4 FY24, up 220 bps QoQ.

The IT firm secured net new deals worth $534 million in Q1 FY25 as against $500 million in Q4 FY24 and $359 million reported in Q1 FY24.

Total headcount was at 147,620, registering a growth of 1.5% QoQ and decline of 0.5% YoY. The last twelve month (LTM) IT attrition rate was constant at 10% in Q1 FY25 as compared to Q4 FY24, while in Q1 FY24 attrition rate was 13%.

Cash and cash equivalent was at Rs 8,055.2 crore as of 30 June 2024, compared with Rs 7,911.5 crore as of 31 March 2024 and Rs 7,701.1 crore as of 30 June 2023.

Rohit Anand, CFO of Tech Mahindra said, “The Q1 results are a positive start both for current turnaround year as well as for our medium-term strategy. As we mentioned in our strategic priorities, our focus continues to be on investing in the business for long-term sustainable performance.”

Mohit Joshi, chief executive officer and managing director of Tech Mahindra, said, “It is encouraging to see positive momentum in most industry verticals which has led to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.”

Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

The scrip declined 1.33% to currently trade at Rs 1,509.75 on the BSE.