Stock Analysis
Tech Mahindra Full Year 2024 Earnings: EPS Misses Expectations
Tech Mahindra (NSE:TECHM) Full Year 2024 Results
Key Financial Results
- Revenue: ₹520.0b (down 2.4% from FY 2023).
- Net income: ₹23.6b (down 51% from FY 2023).
- Profit margin: 4.5% (down from 9.1% in FY 2023). The decrease in margin was primarily driven by higher expenses.
- EPS: ₹26.66 (down from ₹54.76 in FY 2023).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Tech Mahindra EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.7%.
The primary driver behind last 12 months revenue was the IT Services segment contributing a total revenue of ₹442.8b (85% of total revenue). Notably, cost of sales worth ₹365.6b amounted to 70% of total revenue thereby underscoring the impact on earnings.Explore how TECHM's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the IT industry in India.
Performance of the Indian IT industry.
The company's shares are up 2.2% from a week ago.
Risk Analysis
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Tech Mahindra that you should be aware of.
Valuation is complex, but we're helping make it simple.
Find out whether Tech Mahindra is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're helping make it simple.
Find out whether Tech Mahindra is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About NSEI:TECHM
Tech Mahindra
Provides information technology services and solutions in the Americas, Europe, India, and internationally.