10,607.3555.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Tech Mahindra Q4 results: Profit falls 29% YoY, misses estimates; firm announces dividend of Rs 5 per share

Analysts in an ET NOW poll had projected the number at Rs 1,012.40 crore.

ETMarkets.com|
Last Updated: May 01, 2020, 09.37 AM IST
0Comments
Tech Mahindra Q4 results: Profit falls 29% YoY to Rs 804 crore; revenue rises 7%
Tech Mahindra Q4 results: Profit falls 29% YoY to Rs 804 crore; revenue rises 7%
NEW DELHI: Tech Mahindra on Thursday posted a 29 per cent year-on-year (YoY) fall in consolidated profit at Rs 803.90 crore for the quarter ended March 31.

Analysts in an ET NOW poll had projected the number at Rs 1,012.40 crore.

The firm reported March quarter revenue at Rs 9,490 crore, up 6.72 per cent over Rs 8,892 in the same quarter a year ago.

CP Gurnani, MD and CEO, Tech Mahindra, said, “Covid-19 has brought an unprecedented change in business model for the IT industry. While the demand traction seen through the first three quarters of fiscal 19-20 has reversed in Q4, we expect that the focus on digital transformation, remote working, and network modernisation will recover in the medium term. The company has shown a strong growth for fiscal 20 and we remain committed to deliver sustainable solutions to our customers enabling them to adopt to new mormal.”

The board also recommended a dividend of Rs 5 per share on par value of Rs 5 for the financial year ended March 2020.

Total employee headcount of the company increased 4154 YoY to 1,25,236.

Tech Mahindra’s active clients increased 35 per cent YoY to 973 in Q4 FY20. Cash conversion to profit after tax for FY20 stood at 92.20 per cent.

Manoj Bhat, Chief Financial Officer, Tech Mahindra, said, “Q4 has been a quarter where some of our metrics were impacted by the environmental challenges. Efficient operations, cost optimisation and delivery automation will be the key focus areas going into the next year. Our strong balance-sheet combined with a focus on cash conservation will help us tide over the volatility in near term.”
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service