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Business News/ Companies / Company Results/  Tech Mahindra Q4 Results: Net profit drops 41% YoY, dividend declared; 5 key highlights
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Tech Mahindra Q4 Results: Net profit drops 41% YoY, dividend declared; 5 key highlights

Tech Mahindra Q4 Results: India's fifth-largest software company's revenue from operations in the fourth quarter of the fiscal fell 6.2 per cent to ₹12,871.3 crore, compared to the year-ago period.

File Picture: Tech Mahindra logo as seen at its office building in Noida on the outskirts of New Delhi (REUTERS)Premium
File Picture: Tech Mahindra logo as seen at its office building in Noida on the outskirts of New Delhi (REUTERS)

Tech Mahindra Q4 Results: Tech Mahindra announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Thursday, April 25, reporting a drop of 41 per cent in its consolidated net profit at 661 crore, compared to the corresponding period last year. India's fifth-largest software company's revenue from operations in the fourth quarter of the fiscal fell 6.2 per cent to 12,871.3 crore, compared to the year-ago period.

Tech Mahindra CEO Mohit Joshi said, “As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead." He said that FY24 posed its fair share of challenges for the IT services sector. "...yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption," said Joshi. This is the first full quarter under Joshi's leadership, who took over in December 2023.

Also Read: Tech Mahindra Q4 result preview: Profit, revenue may shrink YoY; updated on CME vertical, leadership to be in focus

Here are 5 key highlights of Tech Mahindra Q4 scorecard:
1.P&L Account: Net profit, revenue

Tech Mahindra's net profit dropped 41 per cent in the March quarter, compared to 1,117.7 crore in the year-ago period. Revenue fell 6.3 per cent in the fourth quarter compared to 13,718 crore in the year-ago period. During the full fiscal FY24, the consolidated net profit tanked 51.2 per cent year-on-year to 2,358 crore. The revenue during FY24 at 51,996 crore, translated to a decline of 2.4 per cent over the previous fiscal.

2.Dividend

The company's board recommended final dividend of 560 per cent at 28 per equity share for the face value of 5 each for the financial year ended March 31, 2024, subject to the approval of shareholders at the upcoming annual general meeting (AGM) which will be held on July 26, 2024.

The final dividend, if approved, will be paid on or before, August 9, 2024. This dividend is in addition to interim dividend of 12 per equity share paid by the company in November, 2023.  The total dividend for FY24 will be 40 per equity share on par value of 5 each that is 800 per cent.

Also Read: Q4 results today: Bajaj Finance, IndusInd Bank, Tech Mahindra among 38 companies to report Q4 earnings on April 25

3.Headcount

The company's total headcount stood at 1,45,455 in Q4FY24, down 795 on a sequential basis. The IT attrition rate LTM basis stood at 10 per cent, down 30 basis points sequentially. The total utilization, including trainees stood at 86 per cent in the March quarter.

4.Segment performance

The communications and media segment, which contributes to a third of its overall revenue, saw a 16.5 per cent decline. Stubbornly high inflation, economic uncertainties and geopolitical risks have pushed clients to cut down on discretionary tech spending. Manufacturing saw a growth of 6.2 per cent, while banking and financial services saw a decline of 4.8 per cent.

5.Deal Wins

The Mahindra group company's net new deal bookings stood at $500 million, compared with $382 million in the previous quarter and $592 million in the year-ago period. The cash and cash equivalent stood at 7,912 crore as of March 31, 2024.

‘’With another quarter of robust cash generation, we have reported improvement in deal wins and operating margins in Q4FY'24, which has enabled consistent dividend distribution. We are confident that our actions will lead to steady earnings growth in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns,'' said Rohit Anand, CFO, Tech Mahindra.

 

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 25 Apr 2024, 04:52 PM IST
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