IT Consulting Giant Tech Mahindra reported a 17.4% sequential decline in its consolidated profit at ₹1,081.4 crore on Monday for the March quarter. The company earlier had posted a profit of ₹1,309 in its third quarter of FY 2020 (Q3FY20). Though Consolidated revenue for the third quarter grew by 0.9% at ₹9,729.9 crore over ₹9,647.1 crore in December..
Still Tech Mahindra announced an interim as well as a special dividend of Rs 15 per share each, which will be paid by August 11, 2021. The company in a regulatory filing said, “The Board has proposed a Final Dividend of ₹15/- per share (300%) and a Special Dividend of ₹15/-per share (300%) on the face value of ₹5 in addition to the Special Dividend of ₹15 /- per share declared”.
According to an average of the CNBC- TV18 Analysts Polls , The numbers posted missed analysts’ expectations as the estimated profit was at Rs 1,313 crore on revenue of Rs 9,830 crore for the last quarter.
CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra quoted, “Our continued focus on cutting-edge technologies has expanded client engagement with large deal wins this quarter. We are witnessing a strong demand acceleration and are committed towards delivering a next-level human-centered experience of the future, Now. The health and wellness of our associates and community at large, continues to be our prime focus, as we navigate through this pandemic together.”
Chief Financial Officer Milind Kulkarni said in a statement, “We have witnessed substantial margin improvement and cash flow generation this year. Our focus on delivery transformation will continue, as we increasingly witness a structural shift towards digital to adapt to the new normal”.
A 1 percent sequential growth in revenue was registered by the IT services business which stood at Rs 8,673 crore but the BPO segment registered the revenue flat at Rs 1,056.9 crore in Q4FY21 against Rs 1,056.6 crore in the previous quarter. Though 2.4% correction was witnessed in the Tech Mahindra shares in the current calendar year with underperforming at the Nifty IT index that has gained 5.6 percent in the same period.
A 1.4 percent sequential growth in Q4FY21 was registered by Communications business, manufacturing registered 1.9 percent growth, and technology, media & entertainment revenue growth stood at 0.5 percent. There was a 1.3% decline seen in the Revenue from America sequentially, whereas Europe registered a 2 percent growth and the rest of the world contributed 6.2 percent for the quarter.
Growth in the Banking, financial services insurance (BFSI) segment was witnessed at 4.9 percent quarter-on-quarter but retail, transport & logistics business revenue was down 3.2 percent QoQ.
In the financial year 2020-21, the consolidated profit stood at Rs 4,428 crore which grew by 9.8 percent as compared to the previous year and the revenue increased by 2.7 percent to Rs 37,855 crore year-on-year but on the other hand, revenue in dollar terms of FY21 declined by 1.4 percent to $5,111.1 million YoY.
With Tech Mahindra able to add two clients in the $10-million band and seven in the $5-million bracket, which took the tally of the total active clients’ list to 1,007.
New deal wins in the fourth quarter were at their unprecedented level of $1.04 billion, much higher than predicted whereas Deal wins stood at $455 million in the third quarter.