TechM revenue drops 1% YoY in June quarter | Bengaluru News
Bengaluru: Tech Mahindra’s June quarter revenue declined 1.4% sequentially and 1% year-on-year in constant currency terms, reflecting continued weakness in discretionary client spending. However, the company’s EBIT margin improved for the seventh straight quarter, rising 50 basis points to 11.1%, driven by its internal transformation initiative, Project Fortius, focused on cost optimization and operational efficiency.Its CEO, Mohit Joshi, said the company’s strengthening performance was underpinned by disciplined execution and a focused strategy, with deal wins up 44% over the last twelve months and broad-based momentum across verticals and geographies. He highlighted ongoing macro uncertainty, cautioning against reading too much into quarterly fluctuations, and instead urged focus on longer-term trends. The company secured $809 million in new deal wins during the quarter, marginally higher than the previous quarter, led by AI and digital transformation initiatives across telecom, pharma, financial services, and manufacturing.Regionally, Europe led with 3.6% growth, followed by the Americas at 2.6%, while the Rest of World declined 4.5%. Among verticals, manufacturing grew 4%, communications 2.8%, and tech/media/entertainment 1.3%, while retail, logistics, transport, and BFSI experienced minor contractions. Overall momentum remained mixed, with sector-specific headwinds.The company also bolstered leadership with key hires, including Amol Phadke as chief transformation officer and Manish Mangal to lead Americas communications, reinforcing its focus on strategic transformation and growth. Its headcount declined by 622 sequentially to 79,987, as the company continued workforce optimisation amid subdued demand, while utilisation slipped to 85% and attrition rose to 12.6%. Over 77,000 employees have been trained in AI and GenAI.
