BENGALURU (Reuters) -India’s Tech Mahindra reported its smallest revenue fall in four straight quarters on Thursday, beating estimates, on demand recovery in its manufacturing and healthcare segments.
Consolidated revenue in the first quarter fell 1.2% to 130.05 billion rupees ($1.55 billion). Analysts, on average, had expected revenue to fall 1.6% to 129.45 billion rupees, as per LSEG data.
Analysts look at revenue numbers as that helps them gauge the demand for IT services.
India’s $254 billion-worth IT sector has been coping with sluggish demand in recent years, with clients cutting spending on non-essential projects due to economic uncertainty and higher interest rates.
Revenue for Tech Mahindra, India’s fifth-largest IT services firm by revenue, began falling in the last three quarters, widening from a 2% fall in the September 2023 quarter to 6.17% in March 2024.
However, the worst might be over for the sector, with larger rivals Tata Consultancy Services, Infosys and HCLTech indicating recovery in North America in the coming quarters after reporting upbeat first-quarter results.
The Pune-based Tech Mahindra reported a 23% rise in profit in the June quarter at 8.51 billion rupees, missing estimates of 8.77 billion rupees.
($1 = 83.7090 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Janane Venkatraman)
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