Revenue from operations declined 4.08% to Rs 13,159 crore in Q1 FY24 from Rs 13,718.2 crore recorded in Q4 FY23.

On a year on year (YoY) basis, Tech Mahindra's net profit dropped 38.8% while revenue rose 3.55% in Q1 FY24.

EBITDA stood at Rs 1,338 crore in the quarter ended 30 June 2023, registering a decline of 33.8% QoQ and 28.8% YoY. EBITDA margin reduced to 10.2% in Q1 FY24 as compared to 14.7% in Q4 FY23 and 14.8% in Q1 FY23.

In terms of dollars (USD), revenue stood at $ 160.1 million in Q1 FY24, down 4% QoQ and down 1.9% YoY. In constant currency terms, revenue was down by 4.2% QoQ and down 0.9% YoY. EBITDA was at $162.7 million, recording a de-growth of 33.7% QoQ and 31.8% YoY. Profit after tax was at $ 85.5 million, down 37.4% QoQ, down 41% YoY. Free cash flow was at $106 million, conversion to PAT at 126%.

The IT firm secured net new deals worth $359 million in Q1 FY24 as against $592 million in Q4 FY23 and $802 million reported in Q1 FY23.

Total headcount was at 148,297, declining 2.7% QoQ and 6.2% YoY. The last twelve month (LTM) IT attrition rate reduced to 13% in Q1 FY24 from 15% in Q4 FY23 and 22% in Q1 FY23.

Cash and cash equivalent was at Rs 7,701.1 crore as of 30 June 2023, compared with Rs 7,435.1 crore as of 31 March 2023 and Rs 8.800.8 crore as of 30 June 2023.

CP Gurnani, managing director & chief executive officer, Tech Mahindra, said, "Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver longterm value for our customers and shareholders.”

Rohit Anand, chief financial officer, Tech Mahindra, said, "This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on profitability. We have taken swift and decisive actions to address these issues and improve our execution.”

Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

Shares of Tech Mahindra fell 0.84% to settle at Rs 1,144.05 on the BSE.