Tech Mahindra Q4 net profit plunges 41% to Rs 661 crore

Tech Mahindra reported a significant drop in net profit (41%) to Rs. 661 crore for Q4FY24. Revenue declined by 6.2% to Rs. 12,871 crore. For FY24, net profit fell by 51.2% to Rs. 2,358 crore, while revenue decreased by 2.4% to Rs. 51,996 crore. Despite challenges in the IT sector, Tech Mahindra remains optimistic about future revenue performance. The company's headcount saw a slight decrease, while the board recommended a final dividend of Rs. 28 per share, bringing the total dividend for FY2023-24 to Rs. 40 per share.

IT services company Tech Mahindra on Thursday reported about 41 per cent year-on-year fall in its consolidated net profit to Rs 661 crore for the quarter ended March 2024.

The net profit in the year-ago period was Rs 1,117.7 crore.

For Q4FY24, the Tech Mahindra's revenue dropped by 6.2 per cent to Rs 12,871 crore.

During the full fiscal FY24, the consolidated net profit tanked 51.2 per cent year-on-year to Rs 2,358 crore.

The revenue during FY24 at Rs 51,996 crore, translated to a decline of 2.4 per cent over the previous fiscal.

Tech Mahindra CEO Mohit Joshi said, ''As we step into FY25, we look forward to improvement in clients spending, which fuels our optimism for a better revenue performance ahead.'' He said that FY24 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,'' Joshi said.

The company's total headcount stood at 1,45,455 in Q4FY24, down 795 on a sequential basis.

The board recommended final dividend of Rs 28 per equity share (face value of Rs 5 each) for the financial year ended March 31, 2024.

The Final Dividend, if approved, will be paid on or before, August 9, 2024.

This dividend is in addition to interim dividend of Rs 12 per equity share paid by the company in November, 2023.

''The total dividend for FY 2023-24 will be Rs 40 per equity share on par value of Rs 5 each that is 800 per cent,'' the company said in a BSE filing.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)