Net profit for the quarter ended June 30 increased to Rs 851.5 crore from Rs 692.5 crore a year earlier. Sequentially, profit rose 28.8% from Rs 661 crore in the three months ended March 31. The Pune-based company’s consolidated revenue from operations declined by 1.2% year-on-year to Rs 13,005.5 crore but increased by 1% sequentially.
TechM’s operating margin improved to 8.5% from 7.4% in the previous quarter and 6.8% a year ago. “For TechM, we are more stable and more settled into a new organizational structure, allowing us to capitalize on market opportunities. The market has remained relatively stable, possibly even improving from a year ago,” said managing director and chief executive Mohit Joshi. Three business segments – manufacturing (6.4%), retail, transport & logistics (4.9%), and healthcare & life sciences (6.1%) – posted growth. However, in its largest vertical, communications, revenue fell 9.9% year-on-year and 1.9% sequentially. Additionally, the segment’s market share decreased to 33.1% from 34% in the previous quarter. In the banking, financial services, and insurance (BFSI) vertical, revenue fell 1.2% year-on-year but increased slightly by 0.7% from the previous quarter.
BFSI is not only seeing new opportunities in existing accounts but also gaining new clients, Joshi added.
In dollar terms, TechM’s revenue grew 2.6% year-on-year and 0.7% quarter-on-quarter to $1.56 billion. In constant currency terms, revenue declined 1.2% year-on-year but increased 0.7% from the fourth quarter of the previous fiscal year.
Total deal wins during Q1 increased, with a total contract value of $534 million compared to $500 million in the previous quarter.
