Tech Mahindra posted a 61% decline in net profit at ₹505.3 crore in the second-quarter of FY24, as against a net profit of ₹1,299.2 crore in the corresponding period last year.

The last two quarters were the most difficult driven by slowing demand in telecom and communications segments and delays in deal cycles, said the tech major on Wednesday at a media briefing.

In his commentary on the quarter ending September, the company’s CEO and Managing Director C.P Gurnani said, “the year is being characterised by a challenging demand environment and prolonged macro uncertainties calling.” Mr. Gurnani added that the company is “doubling down” on its strategy “of working closely with clients, helping them streamline and modernise operations as they reprioritise their resources.”

He painted a dire picture of some clients who had to stop their capital expenditures because of a spike in operating costs.
“We have taken actions to reduce the exposure to non-core areas of business,” said Rohit Anand, Chief Financial Officer, Tech Mahindra. He said, “These actions will, over time, help us improve our financial performance and enable long term sustainable growth.”

Tech Mahindra’s attrition rate slipped to 11% in Q2 FY24 from 13% in the previous quarter.

The company declared an interim dividend of ₹12 per equity share of ₹5 each.