Tech Mahindra Q4 consolidated net profit slips 8.4% to Rs 1,126.6 crore

An employee sits at the front desk inside Tech Mahindra office building in Noida on the outskirts of New Delhi
IT major Tech Mahindra Tuesday posted a 8.4 per cent decline in consolidated net profit to Rs 1,126.6 crore for the March 2019 quarter.

Its net profit stood at Rs 1,230.8 crore in the corresponding period a year ago, Tech Mahindra said in a regulatory filing.

However, the Mumbai-based company saw its consolidated revenue from operations increasing 10.4 per cent to Rs 8,892.3 crore as against Rs 8,054.5 crore in the year-ago quarter, it added.

For the full fiscal, the net profit was up 13.2 per cent to Rs 4,288.8 crore, while revenue from operations was higher by 12.9 per cent to Rs 34,742.1 crore as compared to FY2017-18.

"We had a satisfactory year, characterised by significant margin improvements, a growing digital portfolio and considerable increase in deal wins. While our Enterprise business has performed satisfactorily during the year, we are encouraged by the revival of the Communications business," 

 
Tech Mahindra Managing Director and Chief Executive Officer C P Gurnani said.

The total headcount of the company stood at 1,21,082 people at the end of March 2019 quarter, an addition of 8,275 persons annually. Its active clients count stood at 938 in the said quarter.

"It has been a year of overall operational performance improvement on various fronts, leading to a significant expansion in EBITDA margin year on year. We initiated our maiden share buyback program on the back of a healthy cash conversion during the year, with a view to returning enhanced value to our shareholders," Tech Mahindra Chief Financial Officer Manoj Bhat said.

The Board of Directors have recommended a dividend of Rs 14 per share for the financial year ended March, 2019, subject to approval by shareholders at the forthcoming annual general meeting on July 31.