Tech Mahindra Q1 revenue falls 1.2% to Rs 13,005 crore

Tech Mahindra Q1 earnings: Tech Mahindra reported its smallest revenue decline in four consecutive quarters, surpassing analysts' estimates, driven by demand recovery in its manufacturing and healthcare segments.

Consolidated revenue for the first quarter fell by 1.2 per cent to Rs 13,005 crore. Analysts had anticipated a steeper decline of 1.6 per cent to Rs 12,945 crore, according to LSEG data.

Revenue figures are closely monitored by analysts as they provide insights into the demand for IT services.

India's Rs 25,400 crore IT sector has been grappling with sluggish demand, with clients reducing spending on non-essential projects due to economic uncertainty and higher interest rates.

Tech Mahindra, the country's fifth-largest IT services firm by revenue, has seen its revenue decline over the last three quarters, from a 2 per cent fall in the September 2023 quarter to 6.17 per cent in March 2024.

However, there are signs that the sector's downturn may be easing, with larger competitors Tata Consultancy Services, Infosys, and HCLTech indicating a potential recovery in North America in the coming quarters after reporting strong first-quarter results.

Tech Mahindra, based in Pune, reported a 23 per cent rise in profit for the June quarter at Rs 851 crore, slightly below the estimated Rs 877 crore.

(With Reuters inputs)