Tech Mahindra's net profit declines by 33% in Q4; declares dividend
Tech Mahindra missed analysts estimates by witnessing decline of 33% in its consolidated net profit for the fourth quarter ended March 31, 2017 result.
Q4FY17 saw consolidated net profit of Rs 589.69 crore, down by 32.69% compared to Rs 876.14 crore in the similar period of the previous year. The net profit also declined by 30.20% from Rs 844.86 crore in the preceding quarter.
A bloomberg poll of analysts expected profit after tax at Rs 782 crore this Q4 for Tech Mahindra.
Vineet Nayyar, Vice Chairman of Tech Mahindra said, "IT the world over is going through a major shift with demand patterns changing constantly. Most businesses are also battling the geopolitical uncertainties and as a digital transformation company, we see these as huge opportunities in the future."
Consolidated total income was at Rs 7,732.89 crore, registering growth of 9.85% year-on-year (YoY) and 0.26% quarter-on-quarter (QoQ).
On segment wise revenue break-up, IT business saw growth of 9% yoy to Rs 6,975.76 crore and that of BPO business increased by 7.28% at Rs 519.24 crore this Q4.
EBITDA (operating profit) was at Rs 899 crore, down by 21.9% yoy and 24.3% qoq. EBITDA margins stood at 12% in Q4FY17.
In constant currency (CC) terms, revenue grew by 12.1% yoy and 0.9% qoq.
Nayyar added , "Our clients are approaching us with more problems to solve than ever before - that is definitely a happy problem to deal with."
Tech Mahindra informed BSE that its Board of Directors at its meeting held on Friday, inter alia, have recommended a dividend of Rs. 9 per share on par value of Rs. 5 per share (180%) for the financial year ended March 31, 2017.