The operating margin also came down by 15.2 per cent, down 120 basis points (bps) year-on-year. Revenue from operations increased by 4.6 per cent for the quarter and stood at Rs 8,653 crore.
The free cash flow for Q1 stood at Rs 598 crore with a cash conversion to profit after tax at 62.3 per cent.
In dollar terms, the consolidated profit increased by 5.2 per cent and stood at 139 million dollars. The EBITDA decreased by a margin of 4.8 per cent year-on-year and stood at 190 million dollars.
The revenue boosted by 1.9 per cent at 1.25 billion dollars with digital revenues growing by 37 per cent. Total headcount of the company went up by 4,691 to 125,773 quarter-on-quarter.
In Q1 FY20, Tech Mahindra won a deal with a health insurance organisation to provide application portfolio transformation across various business units and technologies. It was selected by Indian Navy to create an RFID-based secured digital access control system.
"We are encouraged to see total contract value deal wins worth close to half a billion dollars across enterprise and communications," said company's Managing Director and Chief Executive Officer C P Gurnani adding the company remains optimistic on the demand environment, evident from a very strong pipeline and deal coversions.
Chief Financial Officer Manoj Bhat said business seasonality affected revenue and margins in the quarter. "Our focus on automation and AI will help realise operational efficiencies as we look to accelerate growth through the year," he said.
Tech Mahindra is a part of the 21 billion dollar Mahindra Group.