Tech Mahindra's Q4 profit rises 16% YoY to ₹1,354cr
What's the story
Tech Mahindra, a leading IT services company, has reported a strong financial performance for the March quarter. The company's consolidated net profit rose by 20.7% quarter-on-quarter and 16% year-on-year to ₹1,354 crore. This is an impressive jump from the previous quarter's profit of ₹1,122 crore, and also beats analyst estimates of a sequential rise to around ₹1,504 crore in this fiscal fourth quarter.
Financial performance
Revenue and EBIT
Along with the net profit, Tech Mahindra's revenue for the January-March quarter also saw a rise. The company's consolidated revenue from operations rose by 4.7% to ₹15,076 crore, beating estimates of ₹14,804 crore. At the operating level, earnings before interest and tax (EBIT) stood at ₹2,084 crore for the quarter, a sequential rise of 10.2% and a year-on-year increase of 48.3%.
Dividend declaration
Board approves final dividend of ₹36 per share
Tech Mahindra's board has approved a final dividend of ₹36 per equity share for the financial year ending March 2026. This takes the total dividend for the year to ₹51 per share, including an interim payout. CFO Rohit Anand said they have taken a disciplined approach to capital allocation and increased dividends by over 13%, marking their highest in history.
Operational details
Tech Mahindra expands margins for 10 consecutive quarters
Operationally, Tech Mahindra's total headcount stood at 1,47,623 at the end of the quarter with attrition remaining stable at 12.1%. The firm's cash and cash equivalents stood at ₹8,456 crore. Despite challenging macro environment, the company managed to expand its margins for 10 consecutive quarters.