IT major Tech Mahindra on Thursday reported a 41% year-on-year (YoY) drop in its March quarter net profit to Rs 661 crore. The same stood at Rs 1,117.70 crore in the March 2023 quarter. The figure was below ET NOW poll estimate of Rs 700 crore.
The revenue from operations for the reported quarter stood at Rs 12,871.30 crore, down 6.2% YoY.
For the full year ended March 31, 2024, the profit after tax (PAT) stood at Rs 2,396.80 crore versus Rs 4,857 crore in FY23. Meanwhile, FY24 revenue stood at Rs 51,995.50 crore, lower than Rs 53,290.20 crore reported in FY23.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the reporting quarter slid over 30% YoY to Rs 1,407.80 crore on a yearly basis versus. On a sequential basis, it was up by 23%. EBITDA margin was reported at 10.9% in Q4FY24 versus 14.7% in Q4FY23, down 380 bps.
The company has recommended a final dividend of Rs 28 per share which will be paid on or before August 9, 2024.
Commenting on the results, Mohit Joshi, Chief Executive Officer & Managing Director said that Tech Mahindra will look forward to improvement in client spending in FY2025, which fuels its optimism for a better revenue performance ahead. FY24 posed its fair share of challenges for the IT services sector, he added.
The company reported a 4.6% YoY and 1% QoQ decline in headcount in Q4FY24 to 1,45,455 from 1,52,400 in Q4FY23 and 1,46,250 in Q3FY24.
The net new deal wins (TCV) climbed to $500 million in Q4FY24 versus $381 million in Q3FY24 but was down on a YoY basis from $592 million reported in Q4FY23.
