Tech Mahindra logs lower PAT and revenue for Q2, to absorb subsidiaries

Chennai: Tech Mahindra on Wednesday said it closed the second quarter of FY24 with a lower net profit and operational revenue and also declared an interim dividend of Rs 12 per share of Rs 5 each.

The company also announced the amalgamation of its three subsidiaries with itself.

In a regulatory filing, the company said for the quarter ended September 30, 2023, it had logged a consolidated operational revenue of Rs 12,863.9 crore (against Q2FY23's Rs 13,129.5 crore) and a net profit of Rs 493.9 crore (Rs1,186.4 crore).

Tech Mahindra's Board also approved the merger by absorption of its wholly owned subsidiaries - Rs.23.85 crore turnover Perigord Premedia (India) Private Ltd; Rs.23.68 crore turnover Perigord Data Solutions (India) Private Ltd, and Rs.393.70 crore turnover Tech Mahindra Cerium Private Ltd.

According to the company, the merger of subsidiaries is done to consolidate and effectively manage the business as a single entity which would provide synergy, economies of scale, and cost competitiveness.