Tech Mahindra Reports Q2: Revenue Up by 3.49% Year-on-Year

The comprehensive analytics outlining the performance and outlook of Tech Mahindra Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Tech Mahindra Limited’s financial performance for the Q2(Sep 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 3.49 %. However, it did see a marginal increase of 2.37 % from the previous quarter. Expenses ticked up slightly by 1.07 % quarter-on-quarter, aligning with the annual decline of -3.17 %. Operating profit, while up 89.66 % compared to last year, faced a quarter-on-quarter increase of 11.87 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 5.98 %, but an expansion of 1.12 % sequentially. Other income rose by 260.82 % compared to the last quarter, despite an annual growth of 104.18 %. Interest expenses surged remarkably by 24.48 % from the previous quarter, yet the year-over-year decrease remains at a moderate -8.72 %. Depreciation costs climbed by 1.64 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 0.88 %. Profit before tax grew annually by 178.48 % but saw an increase from the preceding quarter by 45.77 %.
Tax expenses as a percentage of profits increased slightly by 8.73 % compared to last year, with a more notable quarter-on-quarter decrease of -0.04 %. Net profit rose by 148.86 % year-on-year but experienced a 45.41 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 153.14 % but a quarterly rise of 46.88 %. In summary, Tech Mahindra Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Tech Mahindra Limited’s 2024(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 3.49 % year-on-year growth, however, there was a minor increase of 2.37 % from the previous quarter. Expenses decreased by -3.17 % compared to the previous year, with a 1.07 % increase quarter-on-quarter. Operating Profit surged by 89.66 % annually, and saw a 11.87 % increase from the last quarter.
Net Profit showed yearly increase of 148.86 %, and experienced a 45.41 % increase from the previous quarter. Earnings Per Share (EPS) rose by 153.14 % annually, however rose by 46.88 % compared to the last quarter. In essence, while Tech Mahindra Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.