India-based IT services giant Tech Mahindra Ltd. reported yesterday that revenue as measured in US dollars fell 5.4% year over year in constant currency to USD 1.57 billion in its fiscal third quarter ended 31 December 2023. The decrease on a reported basis was 5.7%. Still, the company reported USD 381 million in new deal wins.

However, revenue rose 1.8% compared to the second quarter and was above analysts’ estimates, NDTV reported.

“The quarter was a mixed outcome, with growth in the manufacturing and healthcare segments but muted spending in areas like communications, [banking, financial services and insurance] and hi-tech,” Managing Director and CEO Mohit Joshi said in a press release. “While this dichotomy in the markets will take its own time to settle, we are focusing internally under the new structure and strengthening the foundations of our organization.”

Third-quarter revenue from Europe fell 8.3% year over, while rest-of-world revenue fell 11.2%. Europe represents 23.8% of total revenue, and rest of world represents 24.3%.

Tech Mahindra reported Americas revenue fell 1.6% on a year-over-year basis in the third quarter. America represents more than half of revenue at 51.9%.

Headcount fell by 6.9% year over year in the third quarter for a total headcount of 146,250.

Profit after tax fell 61.0% year over year to USD 61.0 million.

In December 2023, C.P. Gurnani retired from the managing director and CEO role, handing over the reins to Joshi.

Shares in Tech Mahindra closed up 3.02% yesterday to INR 1,407.95 (USD 16.94) in trading in India. Shares set a new 52-week high in trading today when they reached INR 1,416.30 (USD 17.04). The company has a market cap of INR 1.37 trillion (USD 16.48 billion).