Tech Mahindra Q4 net profit jumps 34.6 pc to Rs. 1,081.4 crore

In the fourth quarter of FY21, Tech Mahindra recorded a 34.6% increase in consolidated net profit at Rs. 1,081.4 crore (US$ 144.75 million).

For the same period, a year ago, Tech Mahindra's net profit was Rs. 803.9 crore (US$ 107.61 million), according to a regulatory filing.

The Mumbai-based firm's consolidated revenue from operations increased by 2.5% to Rs. 9,729.9 crore (US$ 1.30 billion) from Rs. 9,490.2 crore (US$ 1.27 billion) the previous year.

In FY21, net profit increased by 9.8% to Rs. 4,428 crore (US$ 592.71 million), while revenue from operations increased by 2.7% to Rs. 37,855.1 crore (US$ 5.07 billion).

Tech Mahindra Managing Director and Chief Executive Officer, Mr. C P Gurnani said, “With major deal wins this year, our continued emphasis on cutting-edge technology has increased client involvement. We are seeing a significant increase in demand.”

He also mentioned the health and well-being of Tech Mahindra employees and the society as a whole.

Tech Mahindra's chief financial officer, Mr. Milind Kulkarni, said that the company has seen significant margin improvement and cash flow generation this year.

He said, “As we gradually see a paradigm change towards digital to adapt to a changing standard, we will continue to concentrate on delivery transformation. We are in a great position to benefit from this change while also strengthening our financial and operational indicators in the future.”

Subject to shareholder approval, the board of directors has approved a final dividend of Rs. 30 (US$ 0.40) per share (including a special dividend of Rs. 15 (US$ 0.20) per share) for the fiscal year ending March 31, 2021.

If accepted, the special and final dividend will be paid on August 11, 2021. This dividend is in addition to the Rs. 15 (US$ 0.20) per share special dividend paid as interim dividend. According to the filing, the gross dividend for 2020-21 will be Rs. 45 (US$ 0.60).

Tech Mahindra has also announced the purchase of Eventus Solutions Group, a consultancy and technology services firm headquartered in the US.

Tech Mahindra will use the acquisition to strengthen its consulting expertise in the customer experience (CX) and customer management area, as well as step up the value chain in the BPS sector.

At the end of the March 2021 period, Tech Mahindra's overall headcount stood at 1,21,054.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.