Tech Mahindra reports 29% increase in PAT, Board recommends dividend of Rs 28 per share
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Tech Mahindra, a global technology consulting and digital solutions provider, has released its audited consolidated financial results for the quarter and year ending March 31st, 2024.
In USD, the financial highlights for the quarter include a revenue of $1,548 million, representing a decrease of 1.6% QoQ and 7.2% YoY. EBITDA stood at $169 million, marking a 22.9% QoQ increase but a 31.1% YoY decrease, with a margin of 10.9%, up by 220 basis points QoQ. Profit after tax (PAT) reached $79 million, showing a 29.5% QoQ increase but a 41.5% YoY decrease. Free cash flow amounted to $129 million.
In INR, the quarterly revenue was ?12,871 crores, down by 1.8% QoQ and 6.2% YoY. EBITDA was ?1,408 crores, up by 22.8% QoQ but down by 30.3% YoY. Consolidated PAT reached ?661 crores, marking a 29.5% QoQ increase but a 40.9% YoY decrease. Earnings per share (EPS) stood at ?7.45.
For the full year, Tech Mahindra reported a revenue of $6,277 million in USD, down by 5.0% YoY, and ?51,996 crores in INR, down by 2.4% YoY. EBITDA was $599 million in USD, down by 39.5% YoY, and ?4,965 crores in INR, down by 38.2% YoY. Consolidated PAT reached $284 million in USD, down by 52.2% YoY, and ?2,358 crores in INR, down by 51.2% YoY. EPS stood at ?26.58.
Other highlights include a total headcount of 145,455, a decrease of 795 QoQ, and cash and cash equivalents amounting to INR 7,912 crore as of March 31, 2024.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “As we step into FY’25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead. Our unique ability to enable customers with transformative scale at unparalleled speed, differentiates us from competitors. FY’24 posed its fair share of challenges for the IT services sector; yet, amidst the global economic uncertainties, we continue to observe a notable push towards digital adoption.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “With another quarter of robust cash generation, we have reported improvement in deal wins and operating margins in Q4FY’24, which has enabled consistent dividend distribution. We are confident that our actions will lead to steady earnings growth in the coming years. We will continue to focus on operational excellence and cost savings to deliver superior shareholder returns.”
