InvestorQ : Has Tech Mahindra done as well as the other technology companies in the Sep-20 quarter?
vidhya Laxmi made post

Has Tech Mahindra done as well as the other technology companies in the Sep-20 quarter?

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sarah Leo answered.
1 month ago
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The software arm of the Mahindra group may be smaller in size than its larger counterparts like TCS and Infosys but it surely packs a punch as is evident from results. For the Sep-20 quarter, Tech Mahindra reported 3.33% growth in sales revenues at Rs.9,372 crore.

For the Sep-20 quarter, operating profits were 14.82% higher at Rs.1,331 crore while net profits were marginally down 1.33% at Rs.1,063 crore but that is hardly significant. For the Sep-20 quarter, the OPM expanded by 143 basis points at 14.21% while the net profit margins was 90 bps lower at 11.34%. Apart from the fall in other income, it is the operating margins that the company may have to become more competitive.

Being in the technology industry, the COVID impact on revenues was limited. Due to more favorable working capital management, Tech Mahindra managed to improve its net cash from operations 3-fold to Rs.4629 crore in the first half of the fiscal year 2020-21.

With a view to expand and deepen its digital commitment, Tech Mahindra has recently completed the acquisition of Momenton, a digital enterprise technology firm during the quarter. This is likely to further improve the revenue mix in favour of digital and that leaves further room for rapid growth in numbers.

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