Tech Mahindra Q4 results: Gain falls 29% YoY, misses estimates; firm announces dividend of Rs 5 per share

Ahval News Six May 1, 2020

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Tech Mahindra Q4 results: Profit falls 29% YoY to Rs 804 crore; revenue rises 7%

The company declared March quarter earnings at Rs 9,490 croreup 6.72 per cent over Rs 8,892 at the same quarter a year ago. Year-on-year (YoY) drop in consolidated profit at Rs 803.90 crore.Tech MahindraNSE 3.32 % on Thursday submitted a 29 percent Analysts in an ET NOW survey had projected that the amount at Rs 1,012.40 crore. the quarter ended March 31.

CP Gurnani, MD and CEO, Tech Mahindra, said,”Covid-19 has attracted an Demand traction seen through the first three quarters of them to adopt to new mormal.Has reversed in Q4, we expect the focus on digital transformation, Committed to deliver sustainable solutions to our clients enabling Unprecedented shift for the IT industry in business model.The Business has shown a strong growth for 20 and we stay Remote working, and community modernisation will recover in the medium”

The board also recommended a dividend of Rs 5 per share on par value of Rs 5 for the financial year ended March 2020.

Tech Mahindra’s active clients increased 35 per cent YoY to 973 in Q4 FY20. Cash conversion to profit after tax for FY20 stood at 92.20 percent.
Total employee headcount of the company increased 4154 YoY to 1,25,236.

Manoj Bhat, Chief Financial Officer, Tech Mahindra, said,”Q4 has been a quarter where some of those metrics were impacted by the environmental challenges. Operations, cost delivery and optimization automation will be the key focus areas going in the next calendar year. Our strong balance-sheet together with a focus on cash conservation will help us tide over the volatility in near term.”