Tech Mahindra Q4 net profit declines 25.8% to ₹1,118 crore

Board recommends final dividend of ₹32 per share

Tech Mahindra reported consolidated net profit for the fourth quarter of FY23 declined 25.8% to ₹1,118 crore from ₹1,545 crore in the year-earlier period. Revenue at ₹13,718.2 crore was a decline of 0.1% quarter on quarter and an increase of 13.2% year on year.

For the entire fiscal, the company’s revenue grew at 19.4% to ₹53,290 crore, while profit after tax fell 13.2% to ₹4,832 crore. The YoY margin at 15.1% witnessed a decline of 290 bps.

“As we step into FY24, we see the increasing need for businesses to stay agile by leveraging next generation technologies,” MD & CEO C.P. Gurnani said in a press conference.

Despite challenges, the company was strongly focused on helping customers stay competitively dominant and relevant in the era of fast evolving market conditions by helping them adapt to leaner and sustainable business models, Mr. Gurnani added. “Our strategy of prudence and operational excellence helped us through the uncertainties of FY23. We move into the next fiscal, with sharper focus on productivity improvements, cash and value creation for our stakeholders,” said Chief Financial Officer Rohit Anand. The company board has recommended a final dividend of ₹32 per share, taking the total dividend for FY23 to ₹50 per share. The company also reported a decline in attrition to 15% QoQ and 24% YoY. Its headcount reduced by 4,668 to 152,400.