Tech Mahindra Q4 profit down by 8.4 percent, board recommends dividend

Last Updated: Tue, May 21, 2019 19:13 hrs
FILE PHOTO: An employee sits at the front desk inside Tech Mahindra office building in Noida

Mumbai: Indian tech major Tech Mahindra on Tuesday announced results for the fourth quarter ending March 31 2019.

The company said that its consolidated net profit was down by 8.4 per cent to Rs 1,126.6 crore for the fourth quarter. In the same quarter last year, net profit was reported at Rs 1,230.8 crore.

Consolidated revenue from operations, however increased 10.4 per cent to Rs 8,892.3 crore. Last year, same quarter the company posted consolidated revenues of Rs 8,054.5 crore.

Net profit for the entire fiscal year is up by 13.2 per cent to Rs 4,288.8 crore. Revenue from operations is higher by 12.9 per cent to Rs 34,742.1 crore.

The company had a total headcount of 1,21,082 people at the end of the fourth quarter. It added 8,275 people annually. Active clients in this quarter were reported at 938.

"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 was quoted as saying.

"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.

Tech Mahindra's Board of Directors have recommended a dividend of Rs 14 per share for the financial year ended March, 2019, subject to approval by shareholders. The company's annual general meeting is slated to be held on July 31.

At the end of trading hours on Tuesday on the Bombay Stock Exchange, the Tech Mahindra counter saw a total trade of 1.26 lakh shares. The stock ended the session at 773.45, down by 5.55 points or 0.71%.