Tech Mahindra Reports Strong Q3 FY24-25 Results Amid Mixed Operational Trends

Tech Mahindra, a prominent player in the IT software industry, has released its financial results for the third quarter of FY24-25, showcasing a profit before tax (PBT) of Rs 1,280.90 crore. This figure highlights a notable growth compared to the average PBT of Rs 850.58 crore over the previous four quarters. The company's operating profit reached a five-quarter high of Rs 1,809.00 crore, accompanied by an operating profit margin of 13.62%, which points to enhanced operational efficiency.
In terms of profit after tax (PAT), Tech Mahindra reported Rs 983.20 crore, which reflects a positive change over the average PAT of Rs 818.25 crore from the last four quarters. The debtors turnover ratio has also shown favorable movement, achieving a high of 7.40 times in the last five half-yearly periods, indicating effective management of receivables.

Conversely, the company is encountering challenges with its inventory turnover ratio, which has declined to 1,340.80 times, marking the lowest level in the last five half-yearly periods. This suggests a slowdown in the pace of selling inventory.

Overall, these results have led to an adjustment in evaluation for Tech Mahindra, reflecting the company's evolving financial landscape.

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