Tech Mahindra’s net profit increased 6.8% to Rs 1,378.2 crore in the December quarter, despite supply-side difficulties limiting profit growth.
The company also stated that overall income from operations increased by 18.7% to Rs 11,450 crore, but the operating profit margin narrowed to 14.8 percent.
According to Milind Kulkarni, chief financial officer, the company’s margins were hit by supply-side problems while it boosted its topline, citing new personnel and wage hikes as examples.
Chief executive C P Gurnani added that the company had earlier guided for the margin to be in the range of 15 percent.
Gurnani said the company will end FY22 by hiring 10,000 freshers and targets to take the same to 15,000 in FY23.
