Read the quarter in context.
A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹13,159 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
nse xbrl
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tech Mahindra reported a tough Q1 FY24 with revenue of INR 13,959 crore, down 4.1% QoQ, and PAT of INR 693 crore. EBIT margin fell to 6.8%, impacted by a 2% one-time provision from a client bankruptcy and revenue decline. The CME vertical declined 9.4% QoQ due to project closures and discretionary spend cuts, while enterprise was nearly flat. Management described the quarter as a 'perfect storm' but expects gradual recovery from H2, driven by cost levers like subcon reduction (targeting <10% of revenue from 14%) and juniorization. New MD Mohit Joshi is in listening mode. Key risks include prolonged telecom weakness and delayed deal closures. The company remains confident in its long-term positioning despite near-term headwinds.
Colored figures show movement against the previous available record.
Guidance to track
- Management aims to reduce subcontracting costs from current 14% to below 10% of revenue over the next few quarters.
- Management expects first half to be tough but second half to see recovery, driven by deal closures and cost actions.
- Management sees potential to improve offshoring mix by 3-4% in the medium term, which would boost margins.
Risks flagged
- Telcos continue to tighten budgets on both CapEx and OpEx, with discretionary spend cuts and project delays persisting.
- Several large deals in CME vertical have been pushed out, impacting near-term revenue visibility.
- Some margin levers like juniorization require revenue growth to be effective; without growth, margin improvement may be limited.
Key quotes
- Tough times don't last, unprecedented times don't last, you know, challenges of global economy, challenges of communication media sector.
- This quarter is a blip in our growth trajectory.
- We know what we need to do. We just now have to get in to execute, and execute.
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