On a year on year (YoY) basis, Tech Mahindra's net profit dropped 61.58% while revenue fell 2.02% in Q2 FY24.

EBITDA stood at Rs 1,072.3 crore in the quarter ended 30 September 2023, registering a decline of 19.9% QoQ and 46% YoY. EBITDA margin reduced to 8.3% in Q2 FY24 as compared to 10.2% in Q1 FY24 and 15.1% in Q2 FY23.

In terms of dollars (USD), revenue stood at $1,555 million in Q2 FY24, down 2.8% QoQ and down 5.1% YoY. In constant currency terms, revenue was down by 2.4% QoQ and down 5.9% YoY. EBITDA was at $129 million, registering de-growth of 20.5% QoQ and 47.3% YoY. Profit after tax was at $59 million, down 29.3% QoQ, down 62.5% YoY. Free cash flow was at $213 million, conversion to PAT at 357.6%.

The IT firm secured net new deals worth $640 million in Q2 FY24 as against $359 million in Q1 FY24 and $716 million reported in Q2 FY23.

Total headcount was at 150,604, up 1.6% QoQ while down 8.1% YoY. The last twelve month (LTM) IT attrition rate reduced to 11% in Q2 FY24 from 13% in Q1 FY24 and 20% in Q2 FY23.

Cash and cash equivalent was at Rs 6,514.8 crore as of 30 September 2023, compared with Rs 7,701.1 crore as of 30 June 2023 and Rs 7,703.2 crore as of 30 September 2022.

Meanwhile, the board has declared interim dividend of Rs 12 per equity share. The record date for the same has been fixed on 2 November 2023 and the dividend shall be paid on 21 November 2023.

Further, the board has approved the scheme of merger by absorption of its wholly owned subsidiaries, Perigord Premedia (India) (PPIPL), Perigord Data Solutions (India) (PDSIPL) and Tech Mahindra Cerium (TMCPL) with the company and their respective shareholders.

The rationale for the merger is to consolidate and effectively manage the business of the subsidiary companies and Tech Mahindra in a single entity, which will provide several benefits including synergy, economies of scale, attain efficiencies and cost competitiveness, etc.

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.

The scrip declined 1.16% to end at Rs 1,141.70 on the BSE.