Tech Mahindra's net profit declines by 33% in Q4; declares dividend

Vineet Nayyar, Vice Chairman of Tech Mahindra said, "IT the world over is going through a major shift with demand patterns changing constantly. Most businesses are also battling the geopolitical uncertainties and as a digital transformation company, we see these as huge opportunities in the future."

Tech Mahindra office. Photo: Official Website

Tech Mahindra missed analysts estimates by witnessing decline of 33% in its consolidated net profit for the fourth quarter ended March 31, 2017 result.

Q4FY17 saw consolidated net profit of Rs 589.69 crore, down by 32.69% compared to Rs 876.14 crore in the similar period of the previous year. The net profit also declined by 30.20% from Rs 844.86 crore in the preceding quarter.

A bloomberg poll of analysts expected profit after tax at Rs 782 crore this Q4 for Tech Mahindra.

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Vineet Nayyar, Vice Chairman of Tech Mahindra said, "IT the world over is going through a major shift with demand patterns changing constantly. Most businesses are also battling the geopolitical uncertainties and as a digital transformation company, we see these as huge opportunities in the future."

Consolidated total income was at Rs 7,732.89 crore, registering growth of 9.85% year-on-year (YoY) and 0.26% quarter-on-quarter (QoQ).

On segment wise revenue break-up, IT business saw growth of 9% yoy to Rs 6,975.76 crore and that of BPO business increased by 7.28% at Rs 519.24 crore this Q4.

EBITDA (operating profit) was at Rs 899 crore, down by 21.9% yoy and 24.3% qoq. EBITDA margins stood at 12% in Q4FY17.

In constant currency (CC) terms, revenue grew by 12.1% yoy and 0.9% qoq.

Nayyar added , "Our clients are approaching us with more problems to solve than ever before - that is definitely a happy problem to deal with."

Tech Mahindra informed BSE that its Board of Directors at its meeting held on Friday, inter alia, have recommended a dividend of Rs. 9 per share on par value of Rs. 5 per share (180%) for the financial year ended March 31, 2017.

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