Tech Mahindra Q4 Result: IT firm's net profit falls 27% to Rs 1,179.8 crore, declares dividend of 32/share

Tech Mahindra Q4 Result: IT major Tech Mahindra reported a 27 per cent decline in its consolidated net profit for the March quarter at Rs 1,179.8 crore on Thursday. The fifth largest IT services company by revenues had reported a post-tax net profit of Rs 1,637.9 crore in the year-ago period.
 
For FY23, its net profit came at Rs 5,137.6 crore as against Rs 5,794.9 crore in the year-ago period. Its total income increased to Rs 14,023.7 crore as against Rs 12,436.1 crore in the year-ago period, while expenses jumped to Rs 12,493.8 crore as against R$ 10,567.3 crore in the year-ago period. 

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The revenue from operations rose 19.4% to Rs 532,902 million from Rs 446,460 million reported year-ago.

The IT services major reported a total headcount of 152,400 — down 4,668 QoQ. 

On year-on-year basis Tech Mahindra's gross profit rose 10.9% to Rs 151,705 million, from Rs 136,740 million.

Commenting on the results, CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra, said, “As we step into FY'24, we see the increasing need for businesses to stay agile by leveraging next generation technologies. We are strongly focused on helping our customers stay competitively dominant and relevant in the era of fast evolving market conditions by helping them adapt to leaner and sustainable business models.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “Our strategy of prudence and operational excellence helped us through the uncertainties of FY’23. We continue to return cash to shareholders through a consistent dividend policy. We move into the next fiscal, with sharper focus on productivity improvements, cash & value creation for our stakeholders.” 

Tech Mahindra: Dividend

The company announced a final dividend of Rs 32 per equity share for the financial year ended 31 March, 2023 — a 640 per cent payout. 

“Recommended Final dividend of Rs. 32/- per equity share of Rs. 5/- each i.e., 640% of the face value for the financial year ended 31% March, 2023, subject to the approval of members of the Company at the forthcoming Annual General Meeting. The Final Dividend, if approved, will be paid by 11 August, 2023. This dividend is in addition to Special Dividend of Rs. 18/- per share paid as interim dividend in November, 2022. The total dividend for FY 22-23 will be Rs. 50/~ per share on par value of Rs. 5/- each i.e. 1000%," said Tech Mahindra in its regulatory filing.