Bengaluru: India's Tech Mahindra on Wednesday missed second-quarter profit estimates, as clients cut back spending amid a tough macroeconomic environment.
The information technology (IT) services provider's net profit fell 61.6 per cent to Rs 494 crore ($59.4 million) for the quarter ended Sept. 30, from Rs 1,285 crore a year ago.
Consolidated revenue from operations came in at Rs 12,864 crore, down 2.02 per cent year-on-year. Analysts polled by LSEG had expected a profit of Rs 707 crore on a revenue of Rs 13,135 crore.
India's IT industry has been grappling with shrinking tech spending as businesses in the US and Europe, from where it draws the bulk of revenue, cut back investments and delayed closing deals amid fears of an economic slowdown.
Top IT services providers Tata Consultancy Services and Infosys reported lower-than-expected revenues while Infosys and HCLTech cut their annual revenue forecasts earlier this month.
Tech Mahindra's new deal wins fell to $640 million from $716 million a year ago.
Published 25 October 2023, 12:01 IST