Tech Mahindra’s revenue fell by 4% to $1600.7 mn (Rs 13,159 crore) in a quarter that has been a washout among all the large IT companies. However, Tech Mahindra’s revenue tumbled 4.2% in constant currency, making this the market’s sharpest fall. Wipro and HCL Tech also declined in revenue this quarter.

Tech Mahindra reported a 38% YoY decline in Q1 net profit at Rs 692.5 crore on June 30, versus Rs 1,147.5 crore stood in the same quarter in the last fiscal year. Sequentially, the decline was 38% compared to the net profit of Rs 1,125 crore reported in Q4FY23.

EBITDA margins came in at 6.8%, a fall of 440 bps from last quarter’s 11.2%, making it the weakest among its peers.

At 12.17 pm, shares were trading at Rs 1,119.95, down 2.03% on the NSE.

Of the 440 bps impact, CFO Rohit Anand said that 200bps was amid a drop in service revenue in communications, around half % due to seasonality in Comviva, a subsidiary servicing telecom clients, and a one-time impact of 200bps due to specific customer situations going into bankruptcy proceedings.

The business’s total contract value (TCV) or deal wins was $359 mn, down from $592 mn (-39.36%) and $802 mn (-55.24%) in the same quarter last year.

This comes after the company’s attrition tumbled to 13%, the lowest among its peers, and its utilisation is 87%.

Among its verticals, the steepest fall was perceived in the Communications, Media, and Entertainment verticals, being the largest for Tech Mahindra, as revenue from the industry declined by 9.4% sequentially. Banking, Financial Services and Industry fell by 3.2%, Retail by 0.3%, Manufacturing grew by 1.8%, and Technology was flat at 0.1%.

By geographies, Europe’s revenue declined by 6.7%, the Americas by 0.5%, and the Rest of the World by 8.2%.