Tech Mahindra (TECHM) Q4 FY24 Results: Pune-headquartered Tech Mahindra, the country's sixth largest IT firm by market value, on Thursday reported a consolidated net profit of Rs 661 crore for the January-March period, up 29.5 per cent on a quarter-on-quarter basis. The quarterly net profit, however, fell short of analysts' expectations. 

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Tech Mahindra's March-quarter revenue came in at Rs 12,871.3 crore, marking a sequential decline of 1.8 per cent, according to a regulatory filing. 

According to Zee Business research, Tech Mahindra's fourth-quarter net profit was estimated at Rs 690 crore and revenue at Rs 12,900 crore. 

In dollar terms, Tech Mahindra's revenue for the March quarter declined 1.6 per cent to $1,548 million compared with the previous three months. Revenue in constant currency terms shrank 0.8 per cent sequentially, it said. 

The IT company registered $169 million in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), up 22.9 per cent compared with the October-December period. In rupee terms, its EBITDA grew 22.8 per cent to Rs 1,407.8 crore. 

"As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us from competitors. FY'24 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 Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra.

Revenue from the IT firm's core IT segment declined 2.0 per cent sequentially to Rs 10,954.8 crore, while that from its BPO unit slipped 0.1 per cent to Rs 1,916.5 crore. 

Tech Mahindra's EBIT margin, a key measure of profitability, improved by 200 bps to 7.4 per cent for the March quarter. Zee Business analysts had pegged the IT firm's March-quarter margin at 7.3 per cent.

"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 said Tech Mahindra Chief Financial Officer Rohit Anand. 

 The Pune-based company clinched a 31.2 per cent increase in net new deals to $500 million during the quarter under review.

IT attrition at the company, on a trailing 12-month-bassis, remained steady sequentially at 10 per cent. 

The IT firm declared a dividend of Rs 28 per share. Read more on Tech Mahindra dividend

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