technology Mahindra a leading IT services company, has announced a notable rise in its consolidated net profit, which rose more than two-fold to Rs 1,250 crore for the July-September quarter of fiscal 2024-25. This significant growth is primarily attributed to special proceeds from asset sales, as detailed in the company’s recent exchange filing.
In the same quarter last year, Tech Mahindra Net profit stood at Rs 493.9 crore. The company also reported a revenue increase of 3.49 percent, reaching Rs 13,313.2 million compared to Rs 12,863.9 million during the corresponding period of the previous year.
The increase in other income includes a gain of Rs 4,502 crore on sale of properties, comprising freehold land, related buildings and furniture and fixtures sold for a total consideration of Rs 5,350 crore. This amount is expected to be received over a period of four years, accruing interest at 8.2 percent annually.
Sequentially, Tech Mahindra Net profit grew by 46.81 percent, while revenue increased by 2.36 percent.
CEO Mohit Joshi highlighted the company’s continued strategic improvements despite the challenging environment for the broader IT services industry. “We have focused on strengthening customer relationships and expanding our partner ecosystem, while maintaining operational excellence through Project Fortius,” he said. This initiative, launched in April, targets a 15 percent operating margin in three years with an emphasis on organic growth.
Chief Financial Officer Rohit Anand highlighted consistent performance indicators, including increased deal wins and cost optimization. The board has declared an interim dividend of Rs 15 per share as part of its capital allocation strategy. In Q2FY25, the company reported a total contract value (TCV) of $603 million from new deals.
Joshi highlighted the company’s commitment to long-term sustainable transformation, focusing on enhancing capabilities in key service lines and investing in technical specializations. “We continue to invest in our new hiring program, creating a workforce equipped with AI- and cloud-first skills,” he said.
Despite potential volatility this year as the company goes through a recovery phase, Joshi expressed confidence that the foundation is being laid for a strong long-term franchise, supported by a strong leadership team and a clear strategic vision. .
During the quarter, Tech Mahindra added 6,653 employees, bringing its total workforce to 154,273.
On Friday, Tech shares Mahindra closed at Rs 1,688 apiece on the BSE, reflecting a decline of 0.68 per cent over the previous trading day.
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